(WO) — International Petroleum Corp. (IPC) has achieved first oil at Phase 1 of its Blackrod thermal oil sands project in Alberta, with production beginning ahead of schedule and on budget.
The company said initial well pairs entered production on May 31 as operations transitioned from steam circulation to production. Additional well pairs are expected to come online as they complete the commissioning process.
IPC now expects the project to reach its planned plateau production rate of 30,000 bopd by late 2027, approximately one quarter earlier than originally projected when the development was sanctioned in 2023.
Blackrod Phase 1 consists of a central processing facility connected to three well pad facilities and three drainage patterns. The project is connected to regional gas, condensate and crude oil pipeline infrastructure, including the Grand Rapids Pipeline system serving the Edmonton market.
The development contains 2P reserves of 311 MMboe, while the broader Blackrod asset includes an additional 1.1 Bboe of contingent resources. IPC holds a 100% working interest in the project and has regulatory approval to expand production capacity to 80,000 bopd through future development phases.
“I am very pleased to announce first oil from the Blackrod Phase 1 commercial development,” said IPC President and CEO William Lundin. “Since IPC acquired the asset in 2018, the Blackrod project has exceeded all expectations in terms of project execution and resource growth.”
Lundin described Blackrod as a multi-decade growth asset and noted that future development phases could increase production beyond the initial 30,000-bopd level.
According to IPC, Phase 1 is expected to maintain production at approximately 30,000 bopd for more than 25 years, excluding any future expansion projects or contingent resource development.
The company said Blackrod represents the largest greenfield thermal oil sands development brought online in Alberta in the past decade and is expected to serve as a cornerstone asset within IPC’s long-term growth strategy.
Image: International Petroleum Corp.
