Cenovus first-quarter oil sands production up 20%

Oil sands per-unit operating costs decline 31%

  • Combined oil sands production averaged more than 144,000 barrels per day (bbls/d) net in the first quarter, up 20% from the same period in 2014.
  • Total oil production was more than 218,000 bbls/d, 11% higher than in 2014.
  • Upstream per-unit operating costs declined 23%, including a 31% decrease in oil sands per-unit operating costs, compared with the first quarter of 2014.
  • Cash flow was $495 million, a 45% decline from the first quarter in 2014. Higher oil sands production and lower operating costs were more than offset by a significant decline in crude oil and natural gas prices and lower realized refining margins.
  • To conserve cash, the 2015 capital spending budget was cut by approximately $700 million in January, and workforce and discretionary spending reductions were made.
  • The company completed a bought-deal financing, issuing 67.5 million common shares for net proceeds of approximately $1.4 billion.

“We had very strong operational performance in the first quarter, with solid production increases and significantly lower operating costs across our assets,” said Brian Ferguson, Cenovus President & Chief Executive Officer. “We also took decisive steps during the quarter to help preserve our financial resilience in this challenging oil price environment without compromising our future.”

Read the complete news release

Photos

Cenovus's Christina Lake project in northern Alberta uses steam-assisted gravity drainage (SAGD) technology to produce oil. The process involves drilling into the reservoir and injecting steam at a low pressure to soften the oil so it can be pumped to the surface.
Courtesy Cenovus Energy
Steam generators at Cenovus’s Foster Creek project in northern Alberta. The project uses a process called steam-assisted gravity drainage (SAGD) to produce oil, which involves drilling into the reservoir and injecting steam at a low pressure to soften the oil so it can be pumped to the surface.
Courtesy Cenovus Energy