Hangingstone SAGD Project
Athabasca’s Hangingstone Project is an oil sands steam-assisted gravity drainage (SAGD) project that was developed about 20 kilometers south-west of Fort McMurray in Alberta, Canada.
This project was implemented with a $536m investment. An additional $27m was for the construction of ancillary infrastructure. Athabasca’s Hangingstone Project has a production capacity of 12,000 barrels a day. Two proposed other phases are expected to increase capacity to more than 80,000 barrels a day.
The project’s land consists of 213 sections covering an area of about 136,000 acres of oil sands leases. The property holds 51 million barrels of proven reserves, 66 million barrels of probable reserves, and 912 million barrels of contingent resources.
Due to the latest situation with the spread of COVID-19 and the drop in oil prices, Athabasca Oil Corporation is suspending operations at its Hangingstone SAGD oil sands project.
Hangingstone shutdowns include shutting off well pairs and stopping the injection of steam into the formation. It also provides the ability to restart process equipment and pipelines in the future.
Athabasca says the operational break-even price for the project is approximately $37.50 a barrel for Western Canadian Select, which was trading at $9.92 a barrel at noon.