Project Updates - June 2026
Patents Issued and Patent Applications of Note – June 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>=20260601<=20260630
D54 Project Reviews – June 2026
ConocoPhillips: Surmont SAGD
Submitted: June 30, 2025
Reporting Period: January 1 to December 31, 2024
Operational Updates
· Expanded NCG co-injection capabilities to more wells to optimize SOR and redeploy steam:
· Injected at an average range of 4,000-60,000 Sm³/d per subsurface pad
· Executed 2024 drill campaign to replace failed wells and capture bypassed pay:
· Drilled and started up four uphole well pairs to capture undrained resource
· Drilled one cellar well to capture bypassed pay below existing wells
· Drilled 13 infills to accelerate production and reduce watercut
· Executed successful chelant stimulation program
· Competed successful ESP shroud campaign to mitigate gas locking
· Completed Surmount 2 plant turnaround
· Completed warm applied solvent process (WASP) pilot at Surmount 1:
· Process assisted to reduce SOR by maintaining oil rates while cutting steam by half
· Paused the steam additives pilot
· One well suspended and seven wells abandoned for redrill
Wellbore Integrity
· Continued to monitor the evolution of casing deformation in pad wells
· Performed caliper logging on all redrill wells and where opportunities to log were presented
· Performed fluid suppression testing in areas of elevated risk to ensure casing integrity where logging could not be performed
· Performed regular surface casing vent flow (SCVF) testing
· Performed regularly scheduled wellhead inspections and maintenance with no issues identified with wellheads in service
Plans
· Surmont 1 - Start-up Pad104W-A
· Surmont 2:
· Redrill failed wells and drill uphole well pairs
· Expand NCG co-injection to additional drainage areas
· Complete infill well drilling
· Evaluate future pad development options
· Acquire 4D seismic monitors as necessary and evaluate proposed baseline seismic
Greenfire: Hangingstone Demonstration & Expansion SAGD
Submission Date: June 30, 2025
Reporting Period: January 1 to December 31, 2024
Operational Updates
· Demonstration Project:
· Completed tie-in and operation of second on-site disposal well
· Continued refill/redrill program at Pad 5
· Expansion Project:
· Completed tie-in of second source water well
· Installed dedicated quench water pipeline from CPF to Pad 2
· Completed tie-in and operation of second on-site disposal well
· Redrilled producer well at Pads 1 and 4
NCG Co-Injection
· Demonstration Project:
· Approved for full-field NCG co-injection (pipeline fuel gas) and to increase injection up to 50 mole percent with steam on a monthly basis:
· Average project injection: 6,010 m3/d
· Cumulative co-injection: 2,193,800 m3
· Expansion Project:
· Approved for full field NCG co-injection (pipeline fuel gas) up to 25 e³m³/d per well
· Average project injection: 374 e³m³/d
· Cumulative co-injection: 136,786 e³m³/d
Plans
· Expansion Project:
· Operation of the second disposal well
· Installation of a sulphur removal unit
· Development of well pad 7
· Winter delineation program to assist with sustaining pad development
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 month 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 – June 2026
Acceleware
· “Acceleware Acquires Mannville Stack Heavy Oil Assets” – The company paid $100,000 cash and granted a gross overriding royalty on future production for 35 net sections of heavy oil assets located in the Mannville Stack in Saskatchewan from a private oil and gas company. (June 8, 2026)
Athabasca
· “Athabasca Closes On New $500 Million Credit Facility” – The pro forma capital structure supports the company’s fully funded Thermal Oil growth plan to greater than 60,000 bbl/d by 2030 and the expanded Duvernay Energy capital program announced in the Q1 2026 results. (June 1, 2026)
Cenovus
· “Cenovus CEO Calls Out Industrial Carbon Tax In MOU” – Cenovus CEO, Jon McKenzie noted that the MOU between the federal and Alberta governments linking a new West Coast pipeline to the Pathways oilsands carbon capture project lacks the commitment to regulatory reform that would allow industry to grow to offset costs. (June 10, 2026)
Imperial
· “International Petroleum Reports First Oil For Blackrod Phase 1” – IPC announced first oil has been achieved at Phase 1 of the Blackrod project, ahead of schedule and on budget. (June 12, 2026)
IPC
· “Imperial To Pay Fine For Wastewater Overflow” – The Alberta Court of Justice has ordered Imperial to pay a $120,000 penalty, of which $2,000 is a fine, inclusive of victim fine surcharge, and $118,000 will go towards funding a creative sentencing project. (June 16, 2026)
Obsidian
· “Obsidian Energy Evaluates New Ventures” – As part of the company's expanded capital program, approximately $10 million has been allocated to exploratory drilling in the second half of 2026 across two prospective areas, including the Pekisko subcrop. (June 2, 2026)
· “Obsidian Boosting Capital Spending” – Approximately two-thirds of the $100 million 2026 capital spending increase will be directed to accelerate Belly River and Cardium development in Willesden Green, with the remainder allocated towards expanding the Clearwater waterflood program at Peace River. (June 2, 2026)
Surge
· “Surge Energy Lifts Capital Spending Plans” – The company plans to use the $25-million budget increase towards new drilling in the Sparky and SE Saskatchewan core areas as well as for accelerating additional waterflood projects. (June 2, 2026)
Tamarack
· “Tamarack Valley Closes Sale Of Charlie Lake Assets” – The ~$804 million transaction has eliminated Tamarack’s net debt and the net proceeds will be used to repay amounts drawn under the credit facility as well as support the acceleration of growth and waterflood development activities in the Clearwater. (June 16, 2026)
Other
· “Wildfire Season Returns to the Oilsands” – Last year, fires forced Canadian oil companies to temporarily shut in approximately 344,000 bbls/d of oilsands production and the recurring risk of fires in the region adds a level of uncertainty to spring and summer production forecasts. (June 1, 2026)
· “Hodgson Sells Oilsands at Global Energy Show” – Federal Energy and Resources Minister, Tim Hodgson stated that continued progress on regulatory issues and emissions reduction is needed to build the infrastructure to help the country reach its goal of becoming an energy superpower. (June 10, 2026)
· “Alberta Government Looking at Options to Incent New Greenfield Oilsands Development” – During a Q&A session at the Global Energy Show, Minister of Energy and Minerals, Brian Jean stated that the government is looking at ways to optimize greenfield production and that “all options are on the table”. (June 11, 2026)
· “Oil Egress Will Reach Chokepoint Without West Coast Pipeline” – During a panel presentation at the Global Energy Show, the Trans Mountain VP of Business Development said that work on a new West Coast pipeline needs to begin now to avoid a future bottleneck. (June 11, 2026)
· “Investor Interest Returning to Thermal Oilsands, Revitalized Conventional Heavy Oil Sector” – Improving economics and additional egress out of the WCSB is expected to bring investment back, according to Geologic analysts. (June 24, 2026)
· “Canadian Oilsands GHG Intensity Continues to Decline” – According to a new analysis by S&P Global Energy, GHG intensity of Canadian oilsands production has declined for a 13th straight year. (June 26, 2026)
Source: DOB Energy
Technical Publications of Note – June 2026
Production
· SPE-231734-MS: Implementation of High-Efficiency ESP Pumps in CPO-09 Field: A Case Study on Production Improvement, Mechanical Load Reduction, Energy Efficiency, and Performance Under Heavy Crude and High TDH Conditions
Research
· SPE-232826-PA: Effect of Operating Parameters on Solution-Gas Drive and Foamy Oil Flow during Cyclic Solvent Injection: An Experimental and Modeling Study
Reservoir Engineering and Development
· SPE-231673-MS: Techno-Economic Evaluation of Steam and CO2 Injection Strategies in Heavy-Oil Reservoirs: Forest Reserve Field, Trinidad
· SPE-231710-MS: Strategic Polymer Injection Design for Enhanced Oil Recovery in a Mature Multilayer Fluvial Reservoir: The Cañadón Perdido Case Study
· SPE-231758-MS: Methodology for Optimizing the Exploitation of a Mature Heavy Crude Oil Reservoir Through a Digital Framework for Integrated Reservoir Management (IRM): Case APX, Bachaquero Tierra Field
· SPE-233184-MS: Fostering a Recovery Process for an Ultra Deep-Extremely Heavy Oil Reservoir in North Kuwait
· SPE-233271-MS: Two Decades of EOR Polymer Flooding: Global Trends, Challenges, and Lessons Learned
· SPE-233348-MS: Numerical Investigation of Slug Size, Number of Cycles and Injection Timing Effects on Polymer-Alternating-Water Efficiency in Heavy Oil Reservoirs
· SPE-234670-PA: Subcool Optimization in Sandpack for Solvent-Assisted Steam-Assisted Gravity Drainage with n-Butane
Regulatory Applications of Note – June 2026
Baytex
· 1961588: Baytex submitted requested data related to Enhanced Recovery Scheme Approval No. 13514 for the Dawson field. The company provided penetration data and geological interpretation for a horizontal injector not yet drilled at the time of the application approval.
Cenovus
· 1961727: Cenovus provided updated, post-drill information and requested approval for class II water injection of recovered water from the McMurray Basal Aquifer into the Clearwater B Aquifer to finalize the Pressure Management Project (the PS2 Project) at Christina Lake.
Clear North
· 1961602: Clear North requested approval to expand the scheme area and add a water and polymer injection well to the Upper Grand Rapids zones.
· 1961642: Clear North requested approval to expand the scheme area and add five water injection wells in the Spirit River Formation.
ConocoPhillips
· 1961633: ConocoPhillips requested approval to temporarily increase the maximum operating pressure (MOP) for 12 well pairs at Surmount to facilitate effective unloading of wellbore fluids and enable the safe initiation of circulation.
CNRL
· 1961728: CNRL requested approval to expand the Pike 1 PK102 drainage box to capture additional resource off the western edge of the pad.
Headwater
· 1961601: Headwater requested approval to add three new multi-lateral horizontal water injection wells to its waterflood in the Clearwater.
· 1961702: Headwater requested approval to add four new water injection wells to the Upper and Lower Grand Rapids zones.
Obsidian
· 1961708: Obsidian submitted a post-drill application to commence water injection into two wells in the Spirit River Formation.
Spur
· 1961701: Spur requested approval to increase the maximum wellhead injection pressure (MWHIP) of seven water and polymer injection wells in the Clearwater Formation.
Suncor
· 1961705: Suncor requested approval to adjust the start-up maximum operating pressures (MOPs) at Pad 829S at the MacKay River Project to assist with unloading/displacement of fluids from the wellbores during pad start-up.
Source: Alberta Energy Regulator