IPC reports profitable production increase at its Suffield block plays
By Medicine Hat News on February 12, 2020.
The major oil company operating on the Suffield block saw profits and production rise there during 2019, according to the year-end financial report of International Petroleum Corporation released on Tuesday. The global producer recorded a 2 per cent production increase in the field it purchased two years ago from Cenovus while prices nearly doubled compared to late months of 2018. In the region, the company completed a 36-well development program in 2019 as part of an advanced recovery effort. It completed more than 9,000 swabs of gas wells in an optimization program, and finished 150 well re-completions during the year. The company averaged 24,500 barrels of oil equivalent per day in the final months of the year from Suffield, about half the its global production total. The 2020 capital guidance states that US$43 million in spending is earmarked for its southeast Alberta assets, worth about one-quarter the company’s total capital spending. Revenue from the segment was more greatly affected by price captured per barrel, which rose on average to US$40.87 during late 2019, compared to US$21.30 during late 2018. At that point, a steep price differential led to the province bringing in production curtailment for major operators. IPC doubled its profit from the field year over year to $36.7 million. Over all segments, the firm reported unadjusted earnings of $303 million in 2019, a 14 per cent increase over 2018. The company also operates thermal oil recovery projects in the Onion Lake, Alta. area, acquired from Black Pearl Resources in 2018, as well as operations in France, and Malaysia. This fall it purchased Granite Oil, a junior producer that operates in southwest Alberta. 12-11
