Athabasca Oil Corp says it will set aside $120 million next year for its two thermal in-situ assets — Leismer and Hangingstone.
The company plans to expand Leismer’s capacity to about 28,000 bbl/day through the addition of 12 sustaining and infill wells. The debottlenecking project will include upgrades to the existing oil processing plant, and should be fully operational by mid-2024.
Leismer averaged 21,600 bbl/day in November, and is expected to exit 2023 at about 24,000 bbl/day.
MOVING FORWARD ON CARBON CAPTURE
Athabasca also says it plans to make a final investment decision on the implementation of carbon capture at Leismer. The company is working with cleantech firm Entropy Inc. to develop a modular carbon capture unit, aimed at eventually making Leismer production “net zero”.
The company says it is on track to meet its targeted 30% reduction in emissions intensity by 2025.
“Of the technologies assessed, we determined that CCS is the key technology that will provide a step-change amplifying Athabasca’s decarbonization plan.”
— Athabasca Oil Sands
Combined, the Leismer and Hangingstone SAGD facilities produced 31,000 bbl/day in the third quarter. Overall, Athabasca says it expects to produce about 35,000 boe/day next year, including light oil from its Montney and Duvernay assets.
Full-year 2022 results are expected to be reported on March 1, 2023.