Connacher Oil and Gas is on track
On October15,2014 Connacher Oil delivered an operational update.It stated that total production for the quarter averaged 14,100 barrels per day. This is heavy oil from the Great Divide project (south of Fort Mcmurray).Production has increased in every quarter in 2014 and is 20% higher than Q2 2013.In 2014 Connacher made nine new infill wells at Pod One.Five of the nine were brought onstream by Q3.This only increased production by 400 barrels per day,that is, from 13,700 barrels in Q2 to 14,100 barrels in Q3 .But Connacher had predicted the five new wells wouldn't be onstream until Q4.It is possible that the remaining four new infill wells at Pod One may be in production by Q4.This aside, total production from Pod One alone was 9000 barrels per day and from Pad 104 was 5100 barrels per day.
Technical restrictions
This increase in production at Pod One of 400 barrels per day in Q3 means that the facility inlet is now at maximum capacity.There will be no significant increases in production beyond 9000 barrels per day until capacity at the inlet will be enlargened.Connacher expects this to be in Q2 2015.There will likely be increased production available from the four untapped infill wells but little capacity available to process it.In addition,their second plant at Algar will not get product until Q2 2015 when their tie-ins have been made.Total production in Q4 will not exceed 14,300 to 14,400 barrels per day.Connacher says that it will not increase it's facility inlet capacity until Q2 2015.This blog expects that some additional capacity will be installed in both Q4, 2014 and Q1 2015.Work has already started on increasing production from the four new infill wells.Also capital expenditures in 2014 dropped from 2013 and there has been a reduction in debt.Most importantly, this means that Connacher would be sitting on new production from four wells and increased production from the five slightly new wells.This could add up to 1000 barrels per day by Q1 2015 or 90,000 barrels for the entire quarter.This blog expects production of 14,300 to 14,400 barrels per day in Q4 and 14,500 to 14,750 barrels per day in Q1 2015.This will put Connacher on track for 2015.
Technical restrictions
This increase in production at Pod One of 400 barrels per day in Q3 means that the facility inlet is now at maximum capacity.There will be no significant increases in production beyond 9000 barrels per day until capacity at the inlet will be enlargened.Connacher expects this to be in Q2 2015.There will likely be increased production available from the four untapped infill wells but little capacity available to process it.In addition,their second plant at Algar will not get product until Q2 2015 when their tie-ins have been made.Total production in Q4 will not exceed 14,300 to 14,400 barrels per day.Connacher says that it will not increase it's facility inlet capacity until Q2 2015.This blog expects that some additional capacity will be installed in both Q4, 2014 and Q1 2015.Work has already started on increasing production from the four new infill wells.Also capital expenditures in 2014 dropped from 2013 and there has been a reduction in debt.Most importantly, this means that Connacher would be sitting on new production from four wells and increased production from the five slightly new wells.This could add up to 1000 barrels per day by Q1 2015 or 90,000 barrels for the entire quarter.This blog expects production of 14,300 to 14,400 barrels per day in Q4 and 14,500 to 14,750 barrels per day in Q1 2015.This will put Connacher on track for 2015.
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