Please don’t mention this pick to Al Gore.
Athabasca Oil Sands (ATH : TSX : $12.52),
Company Release Highlights – early 2012 additional production :
Highlights from the release include the company’s first Montney horizontal well in the Kaybob East area.The 1,220-metre lateral was fracture stimulated with 14 stages of energized oil treatments and was flow tested during 78 hours.
During the final 24 hours of the test and after having recovered all the load fluids, the well flowed at an average rate of 2,560 barrels of oil equivalent per day (boe/d), (2,265 barrels per day (bbl/d) of 41 degree API oil with 1.8 million cubic feet per day –(mmcf/d) gas), The well is currently shut in until it can be connected to infrastructure. The company holds a significant land position offsetting this well and will continue the delineation of the Kaybob East acreage throughout first quarter of 2012.
ATH also noted that in late Q4/11, the company drilled and completed its second Kaybob Nordegg horizontal well, offsetting its first successful Nordegg well. After completing the 16 stages of slickwater fractures, the 04-11 well flow tested at a final rate of 420 boe/d, at a flowing pressure of 910 psig. Based on the success of this second Nordegg test, the compan will focus its Nordegg delineation on the Kaybob area with further horizontal drilling, core analysis and incorporation of the company’s recently acquired 3D seismic dataset.
The company also noted that it has 1,250 Boe/d tied into third party facilities on an interruptible basis and substantial production capacity behind pipe waiting on the completion of its own facilities.
The construction of the 63-kilometre, 12-inch gas pipeline from Kaybob to the Simonette gas plant is on schedule and is expected to be completed in the first quarter of 2012. In the second quarter of 2012, the company plans to commence construction of one 10,000 bbls/d oil battery and one 24 mmcf/d compression station.
Suncor Energy* (SU : TSX : $34.92), Net Change: 0.02, % Change: 0.06%, Volume: 3,756,949
Suncor January production number is up 10,000 barrels due to the ramp-up of volumes at Firebag-3 as well as infill wells from Firebag 1-2.