BlackPearl enters the home stretch at Onion Lake Phase 2
BlackPearl Resources says it's making progress on its 6,000 bbl/day expansion at Onion Lake, currently tracking ahead of schedule.
Onion Lake is a conventional heavy thermal facility located on the Saskatchewan side of the Alberta/Saskatchewan border, near Lloydminster.
The company says module fabrication is about 85% complete. All 14 horizontal production wells have been drilled as well as 29 out of 39 steam injection wells. The remaining 10 steam wells should be completed by the end of November.
BlackPearl expects construction to be completed by the end of the first quarter next year, with first oil expected by Q3/2018. Phase 2 should reach its nameplate capacity sometime in the first quarter of 2019. The expansion has an estimated capital cost of $185 million.
Once Phase 2 is operational, total thermal production at Onion Lake will increase to 12,000 bbl/day. The company says it is already starting to look at another phase of expansion that could begin as early as 2019.
BlackPearl also operates the Blackrod SAGD pilot, located in the Athabasca oil sands region. The pilot produced an average of 500 bbl/day in the third quarter. The company says additional core hole drilling is planned for this winter to further define development plans at the in-situ facility.
Blackrod already has regulatory approvals in place for 80,000 bbl/day. A single 20,000 bbl/day phase of production has an estimated price tag of about $800 million, requiring at least US$55 WTI to be economically viable. No word yet when on BlackPearl will make a final investment decision for the SAGD facility.
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