Project Profile
Location: Northern Alberta, Canada
Reserves: 300,000 bbls/d
Production: 90,000 barrels per day (bbls/d) (anticipated to be developed in two 45,000 bbls/d phases)
Cenovus Energy Inc. is the operator of the Telephone Lake thermal oil sands project with 100% interest in the project. The proposed project is located approximately 90 kilometres northeast of Fort McMurray, within the company’s Borealis Region of northern Alberta. The approval is for a steam-assisted gravity drainage (SAGD) project with initial production capacity of 90,000 barrels per day (bbls/d), which is anticipated to be developed in two 45,000 bbls/d phases. Telephone Lake is expected to eventually have total production capacity in excess of 300,000 bbls/d, with a project life of more than 40 years.
The Telephone Lake reservoir has high permeability and a thickness similar to that of Cenovus’s existing Christina Lake thermal oil sands project. While dewatering is not essential to the development of Telephone Lake, the company believes it will enhance project economics and reduce the impact on the environment. Approximately 70% of the top water was removed during the dewatering pilot and replaced with compressed air, which Cenovus expects will improve the steam to oil ratio (SOR) of the project. As of December 31, 2013, the independent qualified reserves evaluator (IQRE) estimated bitumen economic contingent resources for Telephone Lake at 2.6 billion barrels. Cenovus expects to reclassify a significant portion of these contingent resources to proved plus probable reserves once a development plan is approved by the company. The company expects to make a decision on the timing of development in 2015.
Operators:
Cenovus Energy Inc.: Operator with 100% interest
Contractors:
Subcontractors: