Strathcona Resources Ltd. has announced the acquisition of underdeveloped thermal land along with the Vawn Thermal Project.
The closing of the acquisitions was announced Dec. 1 as part of a deal with Cenovus Energy, which will see Strathcona pay $75 million in closing and a contingent consideration of up to $75 million.
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In a news release, Strathcona says production at Vawn has averaged approximately five Mbbls/d (thousand barrels per day) and peak production of 12 Mbbls/d.
Strathcona estimates about 26 years of resource life based on year-to-date production rates in the Lloydminster and Waseca formations.
Vawn is directly offset to Strathcona’s existing thermal project at Edam and intends to connect the two facilities into a single integrated complex via a short pipeline beginning in 2027.
The underdeveloped land acquired by Strathcona saw the company receive 16 net sections in the Glenbogie area. They plan to develop it in multiple phases to 35 Mbbls/d, equating to a 20-year resource life.
In the Plover Lake area, Strathcona picked up 22 net sections as they look to expand to 17 Mbbls/d in 2026, followed by a 15 Mbbls/d expansion at Plover Lake West in the long-term.
While in the Lindbergh section, they acquired five net sections. They say it’s ideally suited for multi-lateral conventional development, taking advantage of Strathcona’s facilities at the Lindberg thermal project.
These three thermal lands are expected to increase the company’s long-term production capacity by approximately 35 Mbbls/d.
In Strathcona’s long-term production potential, they outline having all the projects developed by as soon as 2035, while their five-year plan reflects the immediate increase of five Mbbls/d from the Vawn Thermal Project.
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