Wednesday, April 25, 2012

Cenovus releases first quarter results

Cenovus released its first quarter results today. Overall production has increased significantly over the first quarter last year. The Foster Creek property is producing roughly the same at about 57,000 barrels per day, however the Christina Lake property has increased almost three fold from 9,000 barrels per day to 25,000 barrels per day. These are all the numbers to Cenovus before royalties, and since both of the projects are 50/50 joint ventures with ConocoPhillips, by my very intricate calculations the two properties are producing at a total rate of over 160,000 barrels per day. The projects are two of the most successful SAGD operations in the province.

In other Cenovus news, the company is still looking for a JV partner in its Telephone Lake Project. UPDATE: The Calgary Herald has a more in depth look at the search for a Telephone Lake partner. In short, Cenovus is in no rush and wants to get as good a deal as possible, which may involve waiting for a partner that is willing to overlook the harsh differentials currently faced in selling bitumen.

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