Southern Pacific Resource Corp. provided an operational update on its STP-McKay and STP-Senlac Thermal Projects in Alberta and Saskatchewan.
Operations at STP-McKay in the Athabasca oil sands region of Alberta continue to progress as planned. The warm-up phase of the steam-assisted gravity drainage (SAGD) process has been underway at the STP-McKay Thermal Project since the project began steam circulation in July 2012. As expected, the first of the existing 12 well pairs is now in the process of being converted from steam circulation to bitumen production. Over the next several weeks, additional well pairs will be converted to the production phase. The central process facility continues to run at an impressive pace, delivering steam to the well pairs at a 99% on-time load factor. Bitumen returns during the warm-up phase have been successfully separated from the produced water. The produced water is being cleaned, treated and recycled into steam to feed back into the SAGD well pairs. All processes within the project have been successfully commissioned and the plant is prepared to continue running smoothly through the winter season. At STP-Senlac, located near Unity, Saskatchewan, a drilling rig has moved on site and is expected to spud this weekend on the first of six horizontal wells which will comprise Phase K. Phase K consists of three SAGD well pairs. Production from this pad is expected towards the end of February 2013 after the wells are drilled, completed, equipped and warmed up with steam. Production for August and September has been steady at approximately 3,000 barrels per day and operations have been running smoothly. Production levels are expected to materially increase as Phase K is brought on stream.