Hangingstone Project 1
The Hangingstone Project 1, a 12,000 bbl/d SAGD operation, is located approximately 20 kilometres southwest of Fort McMurray.
In October 2012, Athabasca received approvals from the Government of Alberta, to construct the Hangingstone Project 1, its first wholly-owned SAGD project. In late November 2012, Athabasca’s Board of Directors sanctioned the project’s capital budget of $536 million and an additional $27 million for the construction of supporting infrastructure.
First steam is targeted for late 2014.
Based upon an independent engineering estimate at December 31, 2012, contains 51 million bbl of proved reserves, 66 million bbl of probable reserves and 0.9 billion bbl of contingent resources (best estimate).
Hangingstone Projects 2 and 3
The Hangingstone Project 1 is intended to be followed by two consecutive SAGD projects, bringing the area’s overall production to more than 80,000 bbl/d.
In 2012, Athabasca designed the full-asset life cycle development plan for the Hangingstone Projects 2 and 3, (the “Hangingstone Expansion”) including the required expansions to the central processing plant and the well pad layouts.
In support of this full-asset life cycle development plan, the Company gathered environmental data to support regulatory submissions for these commercial SAGD projects. Athabasca submitted an environmental impact assessment (an “EIA”) during Q2 2013, for the Hangingstone Expansion.
- 136,000 acres (net);
- 15 to 20 kilometres southwest of Fort McMurray;
- Received regulatory approvals and Board of Directors’ sanctioning in late 2012, for the Hangingstone Project 1 (12,000 bbl/d SAGD);
- Commenced construction of the Hangingstone Project 1 at year-end 2012, targeting first steam by late 2014;
- Submitted regulatory applications for the Hangingstone Expansion, a 70,000 bbl/d SAGD project, during Q2 2013;
- 51 million bbl of proved reserves (at December 31, 2012);
- 66 million bbl probable reserves (at December 31, 2012);
- 0.9 billion bbl of contingent resources (best estimate) (at December 31, 2012).