AER: CSS Operations are fine

Today the AER published a report on their investigation into the flow to surface problems at CNRL Primrose. Primrose had five reported locations where bitumen emulsion flowed to surface. The flows were not restricted to old wellbores but also seeped through poor cap rock seal due to natural and induced fractures. Mostly the AER blames salt dissolution under the bitumen formation for weakening upper strata.

In their briefing to the media today, the AER said that CNR had been operating within their approval limits and the company has not been charged. However, injection restrictions were placed on some areas of Primrose. These restrictions include restricting some areas to low pressure CSS. But the regulator has further restricted areas within a kilometer of the flow to surface events to very low pressure hydrostatic pressure steam flooding.

The AER confirmed that restrictions in Primrose do not affect other operations by the CNR or by any other operator. That means this CSS project by another operator is fine. Nevertheless, the mindset of the regulator has certainly been altered by these incidents. For example, there are new regulations requiring review of abandoned well integrity within ER Schemes.

Each AER application contains your neighbor's perspective on the exploitation of oil and gas formations. Applications contain more technical data even than SPE papers.

Can we help you review your steam schemes for similar potential concerns? AppIntel and Proven Reserves have the expertise you need.

Not an AppIntel subscriber yet? May we set a demo to show you how it works?

Tags: Thermal, Heavy Oil

Granger Low  21 Mar 2016

Haters know something you don't

Using the regulator to bully and save $3 million

Smartest hacks to make exploring much more rewarding

Exploration intelligence you can milk from industry submissions

Five impediments to adopting oil and gas artificial intelligence

How to keep up with innovation

Quickly copy industry successes

Add $20 million in extra NAV like this user