Top 100 SAGD Wells – Alberta – March 2023

Disclaimer: The information and data provided in this analysis are sourced from publicly accessible resources and do not include privately-held facilities or undisclosed data. As a result, the figures and trends discussed within this analysis may not encompass the complete landscape of the Canadian energy industry.

Please note that all boe conversions presented in this analysis are calculated using a standard conversion ratio of six thousand cubic feet (Mcf) of natural gas to one barrel (Bbl) of oil. For liquid measurements, a conversion factor of 1 m3 = 6.2898 bbl is applied. Furthermore, monthly conversions utilize a factor of 30.5 days for consistency.

SAGD: Revolutionizing Oil Sands Extraction

Steam assisted gravity drainage (SAGD) is an innovative technology that was developed in Alberta in the 1970s and later commercialized in the 1990s. It is an outstanding example of a steam injection process designed for the exploitation of heavy oil or bitumen reservoirs utilizing horizontal wells. SAGD is widely used in Alberta, Canada, Russia, and China for recovery of heavy and extra-heavy oil sands resources. The technology accesses oil sands deposits situated too deep for traditional mining techniques by employing advanced horizontal drilling combined with steam injection, thus maintaining a minimal surface footprint.

The basic SAGD process, as developed by Butler, McNab, and Lo in 1979, utilizes two parallel horizontal wells in a vertical plane: the injector being the upper well and the producer the lower well. If the oil/bitumen mobility is initially very low, steam is circulated in both wells for conduction heating of the oil around the wells. High-pressure steam is then injected into the upper well to mobilize heavy oil/bitumen. The mobilized heavy oil/bitumen flows downward due to gravity drainage to the lower well and is pumped to the surface. As a result, steam rises, forming a steam-saturated zone called a ‘steam chamber,’ with heavy oil/bitumen flowing at the sides of the chamber and condensate flowing inside the chamber.

SAGD is a complex process that relies on a high vertical permeability, and it is essential to have a high vertical permeability for the reservoir. It is also important that the steam chamber be sealed with an impermeable shale caprock to ensure reservoir containment. Successful SAGD treatment requires considering parameters such as reservoir thickness, vertical permeability, and oil saturation.

Although SAGD has been widely used and proved effective in recovering heavy oil resources, it has potential negative environmental effects, including water and air pollution, high natural gas consumption, and possible damage to the formation.

References:

SPE PetroWiki. (n.d.). Steam assisted gravity drainage.

https://www.cenovus.com/Our-operations/Oil-sands-and-heavy-oil

Alberta’s Top SAGD Wells: Cenovus Continues its Dominance

In our list of the top 100 SAGD wells in Alberta for March 2023, Cenovus Energy’s dominance is evident as they operate the majority of the top 10 wells. The highest-performing SAGD well for the month, located at 04-18-070-05W4 (UWI: 107/13-12-070-06W4), produced an impressive 739.30 m3 (4,650 bbl) of oil per day. Additionally, there are four other top-performing wells located at surface 04-18-070-05W4, which all flow into the Foster Creek site. Suncor Energy Inc. is another notable player in the SAGD industry, operating a top-performing well at 03-14-095-06W4 (UWI: 109/14-10-095-06W4), with a production of 447.47 m3 (2,815 bbl) per day. Cenovus has been a trailblazer in the SAGD industry, with its Foster Creek site as the first commercial SAGD project in the oil sands. Presently, Cenovus operates three major producing SAGD projects in the oil sands—Christina Lake, Foster Creek, and Sunrise—as well as 11 SAGD sites in their Lloydminster thermal operations.