The board of directors of Athabasca Oil Corp. has sanctioned the Hangingstone 1 steam-assisted gravity drainage oil sands project in the southern Athabasca region of Alberta and approved a $536 million (Can.) development budget for it (OGJ Online, Oct. 4, 2012).
The company plans a central processing facility and 20 SAGD well pairs drilled from four well pads. The board also approved spending of $27 million on construction of supporting infrastructure.
Drilling will begin in mid-2013. Start-up of the processing facility is scheduled for the fourth quarter of 2014. First steam is expected by the end of 204, with production starting in early 2015. Production capacity is 12,000 b/d of bitumen.
The company plans two other SAGD projects, which will bring potential production in the area to 80,000 b/d.