IPC produces first oil at Blackrod SAGD Phase 1
Key Highlights
- IPC produced first oil at the Blackrod Phase 1 SAGD project in Alberta, Canada.
- Up to 30,000 bo/d for Phase 1 is expected by late 2027.
International Petroleum Corp. (IPC) produced first oil at the Blackrod Phase 1 steam assistant gravity drainage (SAGD) project in Alberta, Canada.
The Blackrod Phase 1 development project began production on May 31, 2026, when the initial well pairs converted from steam circulation to production. The remaining well pairs undergoing steam circulation will subsequently be converted to oil production when they reach necessary conformance conditions.
The forecast plateau production rate of 30,000 bo/d for the Phase 1 project is expected to be achieved by late 2027, a quarter earlier than originally guided at the time of project sanction in 2023. Excluding any contingent resource recognition or future phase expansion developments, Phase 1 is expected to maintain 30,000 bo/d for more than 25 years.
Phase 1 of the Blackrod project has been developed as a Central Processing Facility (CPF) connected to three well pad facilities and three separate drainage patterns. The Blackrod property is connected via pipeline for gas and condensate input sources and crude output which connects into the Grand Rapids Pipeline to Edmonton, Alta.
Phase 1 has 2P reserves of 311 MMboe and Blackrod has a further 1.1 billion boe of contingent resources (best estimate, unrisked).
The next phases of growth are expected to increase production incrementally from the expected 30,000 bo/d up to the regulatory approved 80,000 bo/d.
A SAGD pilot at Blackrod had been operated for a decade which validated both commercial production rates and a corresponding steam oil ratio. Following the completion of FEED studies and the continued production performance from the pilot well pair, IPC decided in 2022 to advance the initial development phase.
IPC is operator of the Blackrod asset with 100% working interest.