IPC holds oil and gas interests in Alberta and Saskatchewan, Canada
Suffield Area, Alberta
The Suffield area assets are conventional oil and natural gas assets held over a large, contiguous land position of 800,000 net acres of shallow natural gas rights and 100,000 net acres of oil rights. Production and reserves from the assets come from conventional shallow oil and gas wells. These stable, low-decline producing fields have low production costs and significant future development potential from a combination of low risk development drilling, well stimulation and enhanced oil recovery opportunities. IPC is operator of the Suffield area assets, with almost 100% working interest.
Oil is produced from the Suffield area assets using conventional recovery methods via water drive with pumped multi-lateral horizontal wells. The production is collected in a network of pipelines and transported to a central processing facility. Sweet natural gas production in the Suffield area is via shallow wells producing from multiple formations. The wells produce into a network of natural gas pipelines with a number of compressor stations
Onion Lake, Saskatchewan
Onion Lake is a conventional heavy oil property located in the Lloydminster area in Saskatchewan. The Onion Lake property is made up of a 12,000 boepd heavy oil thermal project with reserve life of over 20 years. IPC owns 100% of the thermal project and is the operator. In addition, IPC, with its working interest partner, the Onion Lake Cree Nation, produce 2,000 boepd of conventional heavy oil.
The first 6,000 boepd phase of the Onion Lake thermal project commenced commercial production in 2015. The second 6,000 boepd phase commenced steam injection during the first quarter of 2018 and reached name-plate capacity of 12,000 boepd in late September 2018. Total cost of the expansion was CAD 175 million, which is just under CAD 30,000 per flowing barrel, a top tier industry metric. During the second quarter of 2018, construction commenced on the first sustaining well pad and related facilities for the first phase which is expected to be completed by the end of 2018.
During the third quarter of 2018, work began on a facility optimization program of the first phase steam facilities. This optimization work is expected to allow an increase in thermal production by up to an additional 2,000 boepd and is expected to cost approximately CAD 15 million, representing an industry leading development capital of CAD 7,500 per flowing barrel. This program is expected to be completed in the first half of 2019 and it is anticipated to take approximately nine to twelve months after completion to reach the increased production target.
Regulatory approval has been received for an 80,000 boepd SAGD (steam-assisted-gravity-drainage) oil sands project at Blackrod. The delineated resource contains over 600 million boe of best estimate contingent resource which represents over a 20 year reserve life index at 80,000 boepd. For the last 5 years, a SAGD pilot at Blackrod has been operated, which has validated both commercial production rates and a corresponding steam oil ratio.
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¹ On a well-count basis