BlackGold SAGD facility revived and poised for start-up in 2018
Harvest Operations confirmed the restart of commissioning at its BlackGold thermal in-situ facility, located about 150 km south of Fort McMurray near the hamlet of Conklin, AB.
The $900 million greenfield facility was almost mechanically complete at the end of 2015 when the company shelved the project due to low oil prices. Harvest now says it sees signs of "stabilization" in oil prices, allowing it to restructure its debt and secure $250 million in new financing.
Phase 1 is expected to produce 10,000 bbl/day of bitumen using stream-assisted gravity drainage (SAGD) from the Wabiskaw formation. The project already has regulatory approvals in place for up to 30,000 bbl/day of production. The company says major work at site has already commenced and will continue through the winter. Well commissioning and steam injection is expected sometime in the second quarter of next year, followed by electric submersible pump conversion in Q3.
Harvest Operations is a wholly-owned subsidiary of Korea National Oil Corporation (KNOC). KNOC purchased the BlackGold lease from Colorado-based Newmont Mining in 2006 for US$270 million. The block holds an estimated 200 million barrels of probable reserves.
HARVEST OPERATIONS HARVEST CONFIRMS DECISION TO START ITS BLACKGOLD OIL SANDS PROJECT DEC 2017
HARVEST OPERATIONS PERFORMANCE PRESENTATION TO THE AER OCT 2017
HARVEST OPERATIONS INVESTOR PRESENTATION JUL 2017