Oil & Gas Production In Western Alberta Largely Resumes After Wildfires

Energy firms in Alberta appear to be bringing production back online following wildfires in two key areas of the province.

Crescent Point Energy (TSX: CPG) this morning indicated that over the course of the last week, 45,000 boe/d of production has been brought back online in the Kaybob Duvernay region, following the shut-in earlier this month from the fires.

The company reported that no damage occurred to its assets, and that its 2023 guidance remains unchanged despite production being offline for two to three weeks due to the wildfires. Crescent Point still estimates average annual production to be between 160,000 to 166,000 boe/d.

Industry peer Paramount Resources (TSX: POU) appears to not have faired quite as well. After initially taking 50,000 boe/d of production offline on May 5 in the Grande Prairie and Kaybob regions, the firm days later indicated that 75% of that production had been restored.

That restoration however was fleeting, with the company on May 14 revealing that a total of 45,000 boe/d of production was again offline as a result of the wildfires. As of today, 14,000 boe/d remains offline with the remainder restored, with its operations in Grande Prairie said to be fully restored. That production is said to be online within the next week, save for 5,000 boe/d of production which is expected to be offline for another month as facilities and fields are able to be brought back online.

Over a 23 day period, Paramount estimates that production was curtailed by 38,000 boe/d on average. The company has indicated production guidance will be updated when it is reasonably able to report on the full impact of the fires.

Kiwetinohk Energy (TSX: KEC), who was significantly more vague than its peers when shuttering operations, last week reported that “orderly startup procedures,” had begun at its Simonette and Placid fields after improvement in the Fox Creek area. The overall extent of production impact however was not disclosed, with the company indicating on May 15 that at one point 18,000 to 20,000 boe/d of total production had been affected by the fires. It is unclear for exactly how long that production was curtailed. The restart was expected to occur gradually over several days.

Pipestone Energy (TSX: PIPE) meanwhile reported mid last week that 20,000 boe/d of production that was impacted in the Grande Prairie region was gradually being brought online.

Vermilion Energy (TSX: VET) remains an outlier among its peer group. Two weeks ago the company announced that it had restored production to 60% of the 30,000 boe/d initially impacted by the wildfires at its West Central Alberta operations, however an update has not been provided in the time since. At the time the firm revealed it anticipated its Q2 2023 production to average 80,000 to 83,000 boe/d as a result of the curtailments.

Alberta currently has 60 active wildfires, and a total of 539 wildfires year to date.

Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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