Devon submits paperwork for Pike 2 Project

Devon submits paperwork for Pike 2 Project

Devon Energy has filed an environmental application with the Alberta Energy Regulator (AER) for its Pike 2 in-situ project.

The Pike lease is located just south of Devon's Jackfish facility, about 35 km southeast of Conklin, Alberta.

 

MAP COURTESY DEVON ENERGY

 

The project would use enhanced steam-assisted gravity drainage (SAGD) technology to recover bitumen from the McMurray formation. Plans include the co-injection of diluent and possibly chemical additives to reduce steam loads and improve process recovery rates. The application is for 69,400 bbl/day of output.

Pike 2 will produce a heavy, diluted bitumen product, shipped to Edmonton using the Access Pipeline.

No word yet on Pike 1

Pike 1 was approved by the AER in 2015. Construction was initially planned to begin in 2016, but project has yet to be sanctioned. Pike 1 is divided into two 35,000 bbl/day phases. Devon says the project remains "on hold pending favorable market conditions."

In contrast, Pike 2 is being planned as a single phase 70,000 bbl/day facility. Devon says it will use the Kirby Lake Airstrip and existing camps during both construction and normal operation. 

Construction could start as early as 2022, with first oil expected to begin sometime in 2025.

Pike 2 is jointly owned with BP, and has a an estimated capital costs of about $1.9 billion.

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