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Released December 08, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Athabasca Oil Corporation (TSX:ATH) (Calgary, Alberta) has announced a $140 million budget for 2018, and a production outlook of 38,500 to 41,000 barrels of oil equivalent per day (BOE/d). The budget is substantially lower than the $210 million projected for full-year 2017, although the production is expected to be about 15% higher. Industrial Info is tracking $10 billion in active projects involving Athabasca Oil.
Athabasca Oil expects to spend $40 million and $30 million on its light oil assets in the Montney and Duvernay shales, respectively, where the company expects to see "well-defined and scalable growth," according to a press release. The remaining $70 million is attributed to thermal oil projects in Alberta's oil sands, which include the Leismer and Hangingstone bitumen-production projects.
The company said it expected to see minimal capital expenditures at Hangingstone, as the project is still in ramp-up phase. Construction is expected to begin next year on the first phase of Hangingstone's new bitumen production plant, which will use steam-assisted gravity drainage (SAGD) technology to increase production by 8,000 barrels per day (BBL/d) to 20,000 BBL/d, and the debottlenecking of the existing processing plant, which will help to reduce back pressure. For more information, see Industrial Info's project reports on Hangingstone's new production plant and debottlenecking.
At the Leismer complex, Athabasca Oil has proposed a second-phase addition to the bitumen-processing plant, which would double site capacity to 40,000 BBL/d, and a third-phase addition that would bring it to 60,000 BBL/d. Both projects are in their early phases, where plenty of factors could increase, decrease or eliminate the expected spending. In its press release, the company said its planned activity at Leismer for the coming year includes a scheduled turnaround in May, the tie-in of four infill wells, continued production optimization activities and long lead items for future sustaining well pairs. For more information, see Industrial Info's project reports on the second- and third-phase proposals.
Elsewhere in the oil sands, Athabasca Oil has proposed an expansion of the Thornbury bitumen-production plant from 40,000 to 60,000 BBL/d, and a commercial-scale plant at the Dover West complex that would process 35,000 BBL/d utilizing thermal-assisted gravity drainage (TAGD) technology. While Industrial Info has rated these projects as having a medium probability (70%-80%) of kicking off, the previous kickoff dates already have slipped by 15 and 33 months, respectively. For more information, see Industrial Info's reports on the Thornbury and Dover West projects.
Alberta's Oil & Gas Industry Braces for New Regulations
Athabasca Oil's plans come as Alberta outlines its latest efforts to reduce carbon emissions. The province, which leads the nation in oil production by a long shot, plans to require the owners of any facility emitting more than 100,000 metric tonnes per year of carbon to buy offsets or pay $30 for every tonne of emissions over a specified limit, according to CBC News. Those who produce less than the limit will receive credits.
Shannon Phillips, Alberta's Environment Minister, said the new regulations will cut emissions by 20 million tonnes by 2020, and 50 million tonnes by 2030, equivalent to the emissions from about 11.5 million cars, according to CBC News. The provincial government plans to phase in the regulations, with 50% of the costs required next year and 75% in 2019, before the full regulations take effect in 2020. Nonetheless, a spokesperson for the Canadian Association of Petroleum Producers told CBC News that costs to the industry would increase "about five-fold" from the current carbon levy.
Industrial Info is tracking more than $124 billion in active Oil & Gas Production, Pipeline and Terminal projects in Alberta, including nearly $10 billion worth that are under construction.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Athabasca Oil expects to spend $40 million and $30 million on its light oil assets in the Montney and Duvernay shales, respectively, where the company expects to see "well-defined and scalable growth," according to a press release. The remaining $70 million is attributed to thermal oil projects in Alberta's oil sands, which include the Leismer and Hangingstone bitumen-production projects.
The company said it expected to see minimal capital expenditures at Hangingstone, as the project is still in ramp-up phase. Construction is expected to begin next year on the first phase of Hangingstone's new bitumen production plant, which will use steam-assisted gravity drainage (SAGD) technology to increase production by 8,000 barrels per day (BBL/d) to 20,000 BBL/d, and the debottlenecking of the existing processing plant, which will help to reduce back pressure. For more information, see Industrial Info's project reports on Hangingstone's new production plant and debottlenecking.
At the Leismer complex, Athabasca Oil has proposed a second-phase addition to the bitumen-processing plant, which would double site capacity to 40,000 BBL/d, and a third-phase addition that would bring it to 60,000 BBL/d. Both projects are in their early phases, where plenty of factors could increase, decrease or eliminate the expected spending. In its press release, the company said its planned activity at Leismer for the coming year includes a scheduled turnaround in May, the tie-in of four infill wells, continued production optimization activities and long lead items for future sustaining well pairs. For more information, see Industrial Info's project reports on the second- and third-phase proposals.
Elsewhere in the oil sands, Athabasca Oil has proposed an expansion of the Thornbury bitumen-production plant from 40,000 to 60,000 BBL/d, and a commercial-scale plant at the Dover West complex that would process 35,000 BBL/d utilizing thermal-assisted gravity drainage (TAGD) technology. While Industrial Info has rated these projects as having a medium probability (70%-80%) of kicking off, the previous kickoff dates already have slipped by 15 and 33 months, respectively. For more information, see Industrial Info's reports on the Thornbury and Dover West projects.
Alberta's Oil & Gas Industry Braces for New Regulations
Athabasca Oil's plans come as Alberta outlines its latest efforts to reduce carbon emissions. The province, which leads the nation in oil production by a long shot, plans to require the owners of any facility emitting more than 100,000 metric tonnes per year of carbon to buy offsets or pay $30 for every tonne of emissions over a specified limit, according to CBC News. Those who produce less than the limit will receive credits.
Shannon Phillips, Alberta's Environment Minister, said the new regulations will cut emissions by 20 million tonnes by 2020, and 50 million tonnes by 2030, equivalent to the emissions from about 11.5 million cars, according to CBC News. The provincial government plans to phase in the regulations, with 50% of the costs required next year and 75% in 2019, before the full regulations take effect in 2020. Nonetheless, a spokesperson for the Canadian Association of Petroleum Producers told CBC News that costs to the industry would increase "about five-fold" from the current carbon levy.
Industrial Info is tracking more than $124 billion in active Oil & Gas Production, Pipeline and Terminal projects in Alberta, including nearly $10 billion worth that are under construction.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
