BlackPearl Resources says that construction work to double its thermal heavy oil production capacity in the Lloydminster region is nearing completion ahead of schedule and under budget.
The company expects to initiate steam injection in February at Onion Lake Phase 2, just one year after the expansion received corporate go ahead.
“Due to our committed operations staff and favorable weather conditions we are going to complete the project well ahead of schedule,” CEO John Festival said in a statement.
The company says that capital costs for the project are trending toward the low end of its original estimates of $180 million to $185 million. First oil is expected before the end of Q2/2018.
Construction of the initial 6,000 bbl/d Onion Lake Phase 1 was completed in May 2015 and deemed commercial five months later. BlackPearl reports that it has operating costs under $10/bbl.