Foster Creek oil sands returns to operations after forest fire, Cenovus says

CALGARY, Alberta -- Cenovus Energy has returned to normal operations at its Foster Creek oil sands project in northern Alberta after a forest fire on the Cold Lake Air Weapons Range (CLAWR) led to the precautionary shutdown of the operation on May 23 for 11 full days.

Cenovus expects second-quarter production to be reduced by approximately 10,500 bopd net due to the shutdown. For the full year, the production impact is estimated to be approximately 2,600 bopd net. Cenovus expects full-year production from Foster Creek to remain within its previously announced annual guidance of 62,000 bopd to 68,000 bopd net.

Essential staff were cleared to return to Foster Creek on June 1 to inspect the site and begin start-up activities. Crews found no damage to the Foster Creek facility and infrastructure, and the restart of operations went smoothly. The company is assessing expected costs incurred as a result of the evacuation and the shutdown.

Foster Creek, which is jointly owned with ConocoPhillips, had average production of approximately 67,500 bopd net to Cenovus (135,000 bopd) before the forest fire. Production has now essentially returned to this range. Total oil production across all of Cenovus' assets averaged about 218,000 bpd net in the first quarter of 2015.

The Athabasca natural gas operation, which was also shut down due to the forest fire, has returned to normal operations as well. The facility produces about 20 MMcfgd, which is used as fuel for Foster Creek. While the forest fire caused minor damage to peripheral equipment at some well sites, the natural gas wells were not affected.

On June 9, Alberta Agriculture and Forestry declared the forest fire on the CLAWR as being held and lifted the precautionary two-hour evacuation notice for Foster Creek.