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Blog: Connacher Oil and Gas Initiates SAGD+ Project At Great Divide Oil Sands
July 18, 2011
Connacher Oil and Gas Limited (CLL-TSX) announced today that it has initiated the injection of solvent with steam on wells 203-2 and 203-3 on Algar Pad 203, two of seven horizontal steam-assisted gravity drainage ("SAGD") well pairs on one of three wellpads at the company's bbl/d Algar bitumen production operation at Great Divide in Alberta's oil sands. Initial target solvent injection rates were achieved within approximately three hours of startup on July 16, 2011.

This pilot project is designed to measure the increase in bitumen production due to the downhole reduction of bitumen viscosity, through the interaction of the solvent and bitumen at the steam oil interface and the amount of solvent recovered after it is injected. Connacher anticipates there will be a measurable improvement in individual well and overall steam:oil ratios ("SORs") as a consequence of the solvent injection. In turn, this is anticipated to be further improved as a result of anticipated increases in individual well productivity and overall Algar production levels. If the field trial project proves to be as successful as Connacher's initial laboratory and simulation results, solvent injection may be expanded to all seven wells on Pad 203 by year end 2011. Further applications to the two other Algar well pads and possibly also to Pod One would then be under consideration for 2012.

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