Japex uses SAGD method of extraction at Hangingstone
Japan Petroleum Exploration (Japex) says it began extracting bitumen from its Hanginstone oil sands project in project last week.
Currently, Hangingstone is outputting more than 1,000 barrels per day (b/d) and Japex says it is hoping to increase that to its full capacity of 20,000 b/d by the second half of of 2018.
The project uses the SAGD method of extraction and the company says it been achieving operational efficiencies that minimize freshwater consumption by recycling at least 90% of the hot water produced.
In a press release, Japex says its board of directors have agreed to not re-start its SAGD operations at its 3.75 Section Area, known as DEMO area. Operations were shut down last year when wildfires raged nearby and have remained idled due to low oil prices.
Construction of the Hangingstone project began in February 2013 and drilling of the wells required for bitumen production was completed two years later. The Central Processing Facility was completed in February of this year and the company began injecting steam into the wells at the end of April.
Japex holds 75 per cent interest and Nexen Energy is a 25 per cent owner in the project located about 20 kilometres southwest of Fort McMurray.
