With negative news in the newspapers the last few days on the oilsands, I noticed the following article in the Calgary Herald two days ago which reveals that Devon Energy Corp's Jackfish SAGD project experienced what appears to be a blow out (for want of a better word) at one of its wells which has resulted in the Alberta Environment and Energy Conservation Board ordering Devon to shut down 7 of the projects wells while it investigates the cause. According to the report the release of steam and bitumen reached 30 metres. Just what Connacher and the other SAGD producers do not need is any more news appearing like this as they try to differentiate themselves from the open pit bitumen mining companies,in order to show SAGD as an environmentally safer alternative in the open pit bitumen producing oilsands companies.
Leak at Devon oil sands project
By Carrie Tait, Financial Post July 13, 2010
A mix of steam and bitumen spewed into the air at Devon Energy Corp.' s Jackfish oil sands project, pictured, this weekend, prompting the company to shut down seven of its wells. The leak lasted 36 hours, and is being investigated by Alberta Environment and the Energy Resources Conservation Board. The steam and bitumen mix started small and eventually climbed to around 30 metres. About 70% of the leak was water and 30% was raw bitumen, said Nadine Barber, a spokeswoman for the company. Jackfish is an in-situ project, where steam is injected down one well to melt the thick bitumen below the surface, then funnelled up another well. Each well pad hosts seven wells, and Jackfish has four pads. The pad that leaked, and is now shut down, produces "a couple of thousand" barrels of bitumen per day. The entire project churns out about 35,000 barrels per day.
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Cheers; Scott
