November 4, 2024
Alberta East Heavy oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $54.59/Bbl for wells with an Initial Productivity (IP) greater than 300 Bbl/d to a high of USD $86.91/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs USD $13.28/Bbl while royalties & taxes and overhead are USD $11.97/Bbl. F&D costs range from USD $11.39-$34.17/Bbl and the 15% producer return ranges from USD $4.77 to $14.31/Bbl. The assumed WTI differential is USD $13.18/Bbl.
Full-Cycle Cost Curve
Incorrys analysis shows that there is 1,000 MMBbl of oil resource available below USD $50/Bbl and 4,200 MMBbl available below USD $60/Bbl. Current production (2023) was 61 MBbl/d (22.3 MMBbl/yr).
Alberta East Heavy Basin Location
Alberta East Heavy wells are located in eastern Alberta. Wells classified as bitumen are not included although many heavy oil wells in this area are developed using thermal methods.
Number of Drilling Locations
Incorrys estimates that Alberta Central has over 30,500 drilling locations with productivity greater than 300 Bbl/d and over 183,000 drilling locations with productivity below 300 Bbl/d.