Check out Connacher oil it is an oil sands play. It produces 11000 bod. It is in an up trend and just got approval to start it next project.
CALGARY, Jul 16, 2013, 2013 (Canada NewsWire via COMTEX) -- Connacher Oil and Gas Limited (CLL - TSX; "Connacher" or the "Company") is pleased to provide the following operational update for Q2 2013 and confirms the timing of its Q2 2013 conference call and call-in details.
Production
Connacher's production for Q2 2013 averaged 11,500 bbl/d based on field estimates. Production was 7% lower than the prior quarter (Q1 2013 12,406 bbl/d) due to planned interruptions associated with steam generator upgrades completed at Algar in May. Following completion of the upgrades, field estimates for June production averaged 12,500 bbl/d.
Operations
Our 2013 drilling program was completed in Q2 2013 and consisted of four infill wells on Pad 102 and four new well pairs at Pad 104. All of the wells were completed in Q2 2013 and construction of surface facilities and tie-in is continuing at both pads.
We expect to begin steaming the new well pairs at Pad 104 at the end of Q3 2013 for approximately 90 days. These wells will then be converted to production by the end of Q4 2013. The Pad 102 infill wells are expected to be on steam for 30 to 60 days. The first well will begin steaming in July. All four wells are expected to be placed on production by the end of Q4 2013. The replacement well pair on Pad 202 at Algar was placed on production in early July.
As a result of the SAGD+ trial on well pair 203-1 at Algar, average bitumen production rates were approximately 30% higher in the first four months of 2013 than the four months prior to the beginning of the test in May 2012. Steam injection was approximately 10% less over the same comparative period. Solvent injection rates over the entire test period have averaged 6% of the steam volume injected and it is estimated that 92% of the cumulative solvent injected has been recovered. Five months into the test on 203-1, the SOR reached a level approximately 33% lower than SORs prior to the test and have remained at these lower values despite changes to the steam rate. In May 2013 the producer well was converted from gas lift to a submersible pump and the results of this change are being assessed.
We have been piloting SAGD+ at a fourth well at Algar, 203-4, since July 2nd. The trial will continue on both 203-1 and 203-4 pairs through the end of 2013. We are also planning to add an additional trial on at least one of the new well pairs at Pad 104.
Regulatory approval for the SAGD+ commercial project was received on June 5th. We are currently evaluating the feasibility of a SAGD+ commercial project as part of our 2014 capital plan.
During Q2 2013 a key focus of our operations was to reduce the amount of diluent in our dilbit. As a result, we have reduced the diluent blend ratio ("DBR") from 25% to 20% and have seen reductions as low as 18%. We expect this reduction in the DBR to be sustainable. Due to this success, we do not plan to complete the Diluent Recovery Unit (the "DRU") in 2013. Tankage previously completed for the DRU will be tied in to increase storage capacity at Pod One. We will continue to evaluate the future of the DRU as part of our 2014 capital plan.
Marketing
In Q2 2013 bitumen volumes shipped to rail destinations outside of Alberta averaged approximately 9,200 bbl/d (80% of sales) compared to approximately 6,800 bbl/d (55% of sales) in Q1 2013. The balance of the dilbit sales were to intra-Alberta markets.
For the balance of 2013 the Company has approximately 7,500 bbl/d of production hedged at WTI prices ranging from US$90-$105. For 2014 the Company has approximately 4,700 bbl/d hedged at WTI prices ranging from US$90-$96.
