Another blow-out quarter for Devon's Jackfish SAGD facility
Heavy oil production out of Devon Energy's Jackfish SAGD operation averaged 125,100 bbl/day in the first quarter of this year, about 20% higher than the plant's official nameplate capacity and 23% higher than Q1 of last year.
Among the key highlights:
- Jackfish 1 produced 35,300 bbl/day, up 20% y/y due to the ramp of a new well pad.
- Jackfish 2 averaged 43,800 bbl/day, 36% higher than Q1/2016 due to the ramp up of two new well pads.
- Jackfish 3 averaged 46,000 bbl/day, now operating 31% above its nameplate capacity of 35,000 bbl/day.
Jackfish 3 will undergo a 21-day maintenance shutdown in June, cutting average production by 15,000 bbl/day in the second quarter. As a result, Q2 guidance was reduced to 120,000 to 125,000 bbl/day.
The company’s 2017 capital program will be focused on adding new well pads, which should increase output next year. Excluding hedging programs, bitumen realization prices averaged US$26.30 per barrel.
Cash flow from Devon's Canadian operations is expected to increase 60% this year versus 2016. Jackfish now accounts for almost 50% of Devon's total oil production.