Cenovus oil sands production increases 25% in 2014

Proved bitumen reserves up 7%

  • Combined oil sands production averaged more than 128,000 barrels per day (bbls/d) net in 2014, up 25% from 2013.
  • Non-fuel operating costs per barrel at the company’s oil sands projects declined 14% compared with the previous year.
  • Total oil production averaged more than 203,000 bbls/d net, up 14% from 2013.
  • Capital investment was $3.1 billion, 6% lower than in 2013.
  • Cash flow was $3.5 billion, a 4% decrease compared with 2013. Rising oil sands production and higher average prices for heavy crude oil were more than offset by the impact of lower realized margins in Cenovus’s refining business.
  • In 2014, the company received regulatory approval for its Grand Rapids and Telephone Lake oil sands projects and its Foster Creek phase J expansion.
  • Production replacement was 193% due to strong growth in proved reserves. Proved year-end bitumen reserves were nearly two billion barrels (bbls), up 7% from 2013.

“We had strong operating performance in our oil sands and conventional businesses in 2014, with significant growth in oil sands production and additions to our portfolio of regulatory-approved projects,” said Brian Ferguson, Cenovus President & Chief Executive Officer. “With low oil prices expected to persist through 2015, we plan to continue building our production capacity, but at a slower pace, focusing on expansion projects at Foster Creek and Christina Lake that are already well advanced.”

Read the complete news release

Photos

Cenovus's Christina Lake project in northern Alberta uses steam-assisted gravity drainage (SAGD) 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