Pengrowth following MEG with tech approach to improve oilsands production, lower emissions

Pengrowth's Lindbergh SAGD project. Image: Scovan Engineering

Pengrowth Energy is taking a page from the book of thermal oilsands competitor MEG Energy, incorporating the same technology approach to “enhance” production.

Pengrowth received regulatory approval in early June to apply non-condensable gas (NCG) co-injection at its Lindbergh SAGD project in the Cold Lake region.

NCG is a key piece of MEG’s eMSAGP process, which has been proven at the company’s Christina Lake project south of Fort McMurray to increase production and reduce steam to oil ratios. Where eMSAGP has been deployed, which also includes infill drilling between SAGD well pairs, MEG has said its steam to oil ratio has dropped to 1.0 to 1.25:1. The industry average is 3:1.

“The implementation of NCG, in tandem with infill wells is expected to improve operating efficiencies, reduce steam requirements and reduce water use and emissions,” Pengrowth said in a statement.

“When sufficient heat is established in the reservoir, the NCG helps maintain pressure and frees up steam to be redeployed into new SAGD well pairs. The application of solvent assisted SAGD in similar reservoirs has demonstrated improvements in oil production while achieving reductions in steam requirements versus conventional SAGD.”

Pengrowth recently tied in eight new infill wells at Lindbergh, the company said on Wednesday.

The project is currently producing about 17,500 bbls/d and is expected to reach 18,000 bbls/d by the end of the year, up from about 14,300 bbls/d at the end of 2017. Pengrowth plans to increase production to 20,000 bbls/d by 2020, with “expansion spending to be aligned with cash flow generation, while adding no incremental debt.”