Project Updates - May 2026
Patents Issued and Patent Applications of Note – April 2026
Source: United States Patent and Trademark Office
[1] Search criteria: ("sagd" OR "CSS" OR "steam assisted gravity drainage" OR "cyclic steam stimulation" OR "bitumen" OR "thermal recovery" or "heavy oil" or “steam”).AB. AND @PD>=20260501<=20260531
D54 Project Reviews – May 2026
CNOOC: Long Lake Performance Update
Submitted: June 30, 2025
Reporting Period: January 1 to December 31, 2024
Operational Updates
· Completed site development for Long Lake Pad 19 with first steam in July 2024 and first oil in October 2024
· Continued to progress brownfield drilling program to increase production
- Executed over 30 brownfield wells
- Achieved first oil for 27 wells adding over 10,000 bopd
· Ramped up production volume at Kinosis Pads 1 & 2 (K1A)
· K1A pipelines (BFW & PE) operational and functioning as expected
· Cleared Kinosis Pad 3 (K1B) and started site preparation for drilling planned in Q3 2025
· Upgrader TGTU commissioned and put into service
- Upgrader was only able to run its full cracking process for 5 months in 2024 due to rotating equipment issues
· Acquired 4D seismic over LLE Pads
· NCG injection started on Long Lake pads 12-15 in Q2 2024
Plans
· Continue ramp up of production at Long Lake Pad 19
· Commence drilling at Kinosis Pad 3 (K1B) in Q3 2025
· Drill Pad 16 expansion wellpairs in Q4 2025
· Increase K1A Drainage Area "A" operational pressure
· Progress regulatory approvals and site preparation for Long Lake Pads 20 & 21
· Conduct detailed engineering for K1Aand Long Lake plant optimization
· Submit applications for the following:
- D023 Long Lake Pad 20, 21, Pad 16 expansion wellpairs and Kinosis Pad 3 subsurface revision
- Water Act renewals
- Long Lake 10-year EPEA renewal
Connacher: Algar / Great Divide SAGD
Performance Update as of June 30, 2025
Reporting Period: January 1 to December 31, 2024
Operational Updates
· Continued ramp up of new SAGD well pairs’ production (Pads 104W, 105W, 202NE, 203W)
· First five Pad 232 well pairs achieved first oil and drilling commenced for an additional four
· Two well pairs drilled on Pad 104 one well pair drilled on Pad 105W
· NCG co-injection commenced at Algar
· Co-injection of light hydrocarbons (SAGD+ process) continued and planned for Pad 232
- Deployed on all six well pairs across pad 203W and 202N
- SORs increased in 2024 on 203W due to pad-to-pad pressure management difficulties
Plans
· Drill and start up final four well pairs on Pad 232 in Q2 2025
· Start production of three well pairs and two infills drilled at Pod One in mid-2025
· Optimize next pads to be developed
· Submit applications for sustaining well pad/approved development area expansions
· Continue to optimize and debottleneck Pod One and Algar CPFs
· Advance Clearwater disposal capacity near the Pod One plant site
Source: Alberta Energy Regulator
Please note that the Alberta Energy Regulator (AER) transitioned to a new protocol in 2021 under which all D54 project reviews submitted by or before June 30th of a given year will be posted during the first quarter of the following year. Summaries for 2-3 project reviews per May will be featured in this publication over the course of a given year once they become available. All available presentations can be viewed online by clicking the source link.
DOB Energy Articles of Note – May 2026
Athabasca
· “Athabasca Advances Leismer Expansion, Remains on Schedule” – The expansion project includes an estimated $190 million for facility capital and an estimated $110 million for growth wells, with a capital efficiency of approximately $25,000/bbl/d. (May 8, 2026)
Baytex
· “Baytex To Advance Planning for Gemini SAGD Project” – The company reported that a final investment could be made in 2027 for its Gemini thermal SAGD project which is approved for 5,000-bbl/d in the first phase of development. (May 8, 2026)
· “Baytex Raises 2026 Production Guidance” – The company is increasing this year’s production guidance to 69,000–71,000 boe/d (up from 67,000–69,000 boe/d) thanks primarily due to outperformance across its heavy oil portfolio. (May 8, 2026)
Cenovus
· “Cenovus Drilled the Most Wells in Q1 2026” – Cenovus was the top operator in the first quarter of 2026 based on wells rig released, followed by CNRL, Suncor, and Strathcona. (May 1, 2026)
· “Cenovus Energy Reports Record Production in First Quarter” – The company reported Q1 2026 production of 972,100 boe/d, up from 917,900 boe/d in Q4 2025. (May 6, 2026)
· “Cenovus Thermal Operations Ramping Up Quickly” – Cenovus reported average Q1 2026 production of 359,000 bbls/d at Christina Lake and over 65,000 bbls/d at Narrows Lake. (May 7, 2026)
CNRL
· “Pike 1 Drilling Results at Jackfish SAGD Asset Exceeding Expectations, Says CNRL” – CNRL reported that the second new Pike 1 pad came on production in late March and current combined production from the two new pads is approximately 41,000 bbls/day. (May 7, 2026)
· “CNRL Reports Record Conventional Production in First Quarter” – CNRL reported Q1 production updates, including average thermal in situ production of 274,674 bbls/d. (May 7, 2026)
· “Future Oilsands Growth Depends on Successful MOU And West Coast Pipeline, Says CNRL” – CNRL’s president discussed the company’s oilsands growth opportunities. (May 7, 2026)
ExxonMobil
· “Canadian Technology Key to Any Entry into Venezuela, Says ExxonMobil” – ExxonMobil continues examining a potential re-entry into Venezuela’s heavy oilfields, hoping to leverage technology developed by its affiliate, Imperial Oil. (May 12, 2026)
Gibson
· “Expanding Oil Export Pipelines Present Opportunities for Gibson Energy” – The company anticipates more oil storage and handling opportunities and plans to focus on its $400-million Chauvin acquisition in the near term. (May 5, 2026)
Headwater
· “Headwater Lifts Production Outlook” – The increase in production guidance along with positive pricing momentum has opened the door to strategic spending opportunities including $15 million for secondary recovery in the Wabiskaw, Grand Rapids, and Clearwater formations. (May 1, 2026)
Hemisphere
· “Stable Production for Hemisphere’s Polymer Flood Projects” – The company reported Q1 2026 production of 3,811 boe/d (99 percent heavy oil) noting that the Atlee Buffalo polymer flood projects had good run time and stable production, providing a strong base cash flow. (May 15, 2026)
Imperial
· “Imperial Kearl, Cold Lake Production Increase in First Quarter” – Total gross bitumen production averaged 259,000 bbls/d at Kearl and 155,000 bbls/d at Cold Lake, up from 256,000 bbls/d and 154,000 bbls/d respectively in Q1 2025. (May 1, 2026)
· “Kearl Work To Double Turnround Interval” – Imperial’s plans to extend the turnaround interval at its Kearl oilsands K1 train to four years from two years following a similar project scope to its K2 train. May 4, 2026)
IPC
· “International Petroleum's Blackrod Project Nearing Completion” – The 30,000 bbls/d project is still on track for first oil ahead of schedule in the third quarter of 2026 said William Lundin, president and CEO. (May 7, 2026)
Obsidian
· “Obsidian Plans ‘Material Increase’ to 2026 Budget” – The company reported active drilling programs at Peace River and Willesden Green in Q1 2026 and expanded waterflood initiatives for heavy oil operations. (May 8, 2026)
Rubellite
· “Rubellite Continues Testing Different Well Designs Across Its Heavy Oil Acreage” – The company reported positive results testing new well designs across its inventory of 475 heavy oil drilling locations in its Clearwater and Mannville Stack. (May 12, 2026)
· “Rubellite Reports Record Heavy Oil Sales in First Quarter” – The company reported record average heavy oil sales of 8,641 bbls/d in Q1 2026, up four percent from Q1 2025. (May 12, 2026)
Strathcona
· “Strathcona’s Output in Line With Previous Quarter” – The company reported Q1 2026 production of 117,000 boe/d noting a two percent decrease at Cold Lake that was due to initial strong performance at Tucker being offset by downtime at Lindbergh. (May 7, 2026)
Suncor
· “Suncor Boosts Projected Share Repurchases by Over 30%” – Suncor reported Q1 updates including total oil sands bitumen production of 933,900 bbls/d and record quarterly production at Fort Hills. (May 6, 2026)
Tamarack
· “‘Robust’ Q1 Production for Tamarack Valley” – Overall Q1 2026 production was up five percent compared to the previous year, reflecting a 19 percent year over year increase in average production from Tamarack’s Clearwater assets. (May 7, 2026)
· “Tamarack Valley Selling Charlie Lake Assets, Becoming Pure Play Clearwater Producer” – Net proceeds from the divestiture will initially be directed to eliminate Tamarack’s net debt and will support primary and secondary development activities across the company’s Clearwater fairway driving accelerated production growth. (May 28, 2026)
· “Tamarack Valley Updates Capital Plan in Light of Charlie Lake Sale” – Tamarack is expanding the capital program in the Clearwater fairway by $75 million with 40 per cent of the expansion dedicated towards secondary waterflood recovery. (May 28, 2026)
Other
· “Integrated Oilsands Profiting from Market Upheaval” – Company executives noted that although supply disruptions are allowing integrated oilsands operators to capture significant upstream and downstream revenue, the increased cash inflows are highly variable and will depend on the aftermath of the Iran war. (May 14, 2026)
· “Higher Prices Not Impacting Oilsands Capital Plans” – Executives at Canada’s three biggest oilsands producers don’t plan on making any capital adjustments and are instead monitoring share prices to decide whether to allocate excess cash flow to buybacks or debt repayment. (May 14, 2026)
· “Solvent-Assisted SAGD Being Integrated into Oilsands Operators’ Future Plans” – Successful solvent assisted SAGD (SA-SAGD) projects such as Imperial’s Grand Rapids project are giving oilsands operators confidence to integrate the technology into long-term development plans. (May 15, 2026)
· “Oil Sands Alliance President Takes Wait and See Approach to MOU” – Although recent regulatory and other changes proposed by Ottawa are an improvement, the Canadian industry still is at a competitive disadvantage to its global peers. (May 25, 2026)
· “Oilsands Firms Can Afford Carbon Capture, Canadian Energy Minister Says” – Canadian Energy Minister Tim Hodgson said he’s “highly confident” that Alberta oilsands companies can absorb the cost of building carbon capture, despite their protests that Canada’s climate rules hurt their global competitiveness. (May 25, 2026)
Technical Publications of Note – May 2026
Drilling and Completions
· SPE-232726-MS: A Field-Validated Approach _ Enhancing Drilling Efficiency in Steam Injector Wells Through Directional Profile and Bottom Hole Assembly (BHA) design
Production
· SPE-232729-MS: Enhancing Thermal Recovery Capability of High-Temperature ESP in South Field, Oman
Research
· SPE-232684-MS: A Safer and Environmentally Responsible Xylene-Free Solvent Technology for Heavy-Oil Viscosity Management
Reservoir Engineering and Development
· SPE-227938-PA: Alkali-Polymer Flooding after Polymer Flooding: Field Test Results
· SPE-232519-MS: Improving the Economics of Polymer Flooding for Enhanced Oil Recovery
· SPE-232718-MS: Turning Field Challenges into Opportunities: An Integrated Offtake Recovery Strategy Driving Sustainable Performance in a Mature Thermal EOR Field in the Sultanate of Oman
· SPE-232867-MS: Simulation of EOR Methods for Ugnu Heavy Oil in the S-Pad: Toward a Line of Sight for Replicating J-Pad Success at Milne Point
· SPE-233416-PA: Laplace-Based Analytical Modeling of Transient Wellbore-Formation Heat Transfer during Drilling Fluid Circulation
· SPE-233765-PA: A Surrogate-Assisted Framework for Multi-objective Production Optimization of Graded-Viscosity Polymer Flooding
Regulatory Applications of Note – May 2026
Baytex
· 1961323/1961490: Baytex submitted requested data related to Enhanced Recovery Scheme Approval No. 13514 for the Dawson field within the Peace River Oil Sands Area 2. The company provided penetration data and geological interpretation for a horizontal injector not yet drilled at the time of the application approval.
Cenovus
· 1961343: Cenovus requested approval to conduct a Wabiskaw steam and co-injection project at the Christina Lake Thermal Project H03 well pad to further enhance existing, approved production.
· 1961410: Cenovus applied for a once-through steam generator (OTSG) duty rating increase and casing gas re-injection at Christina Lake North. These initiatives are part of several debottleneck opportunities identified following the acquisition of MEG in November 2025 which seek to increase production to 150,000 bbl/d by 2028.
· 1961516: Cenovus requested approval to complete alterations to the Narrows Lake Thermal Project (NLTP) Wells Package 3 well pad layouts. Specifically, Cenovus proposes to amalgamate previously approved drainage patterns.
Clear North
· 1961377: Clear North requested approval to expand the scheme area and add six multi-lateral horizontal injection wells to the Spirit River Deposit in the Peace River 2 oil sands area.
CNRL
· 1961304: CNRL requested approval to amend the enhanced recovery scheme in the Athabasca Oil Sands Area to allow for seven new horizontal wells to be drilled and completed for polymer injection in the Wabiskaw formation.
· 1961318: CNRL submitted a post-drill application for horizontal injectors that were pre-drill approved for the Clearwater Deposit.
· 1961497: CNRL requested approval to expand the scheme area and add nine horizontal water injection wells to the Clearwater Deposit of the Athabasca Oil Sands Area.
Headwater
· 1961413: Headwater requested approval to add five horizontal water injection wells to the Clearwater Deposit of the Athabasca Oil Sands Area.
Obsidian
· 1961317: Obsidian requested approval to amend the enhanced recovery scheme in the Spirit River Deposit of the Peace River 2 Area by adding four horizontal water injection wells.
Source: Alberta Energy Regulator