Cenovus Energy Says Foster Creek Returns To Normal Operations After Forest Fire

(RTTNews) - Cenovus Energy Inc. (CVE.TO, CVE) Thursday said it has returned to normal operations at its Foster Creek oil sands project in northern Alberta after a forest fire on the Cold Lake Air Weapons Range or CLAWR led to the precautionary shutdown of the operation on May 23 for 11 days.

The company expects second-quarter production to be reduced by about 10,500 barrels per day net due to the shutdown. For the full year, the production impact is estimated to be around 2,600 bbls/d net.

Cenovus expects full-year production from Foster Creek to remain within its previously announced annual guidance of 62,000 bbls/d to 68,000 bbls/d net.

Essential staff of the company were cleared to return to Foster Creek on June 1 to inspect the site and begin start-up activities. Crews found no damage to the Foster Creek facility and infrastructure, and the restart of operations went smoothly.

The company is assessing expected costs incurred as a result of the evacuation and the shutdown.

Foster Creek, which is jointly owned with ConocoPhillips, had average production of approximately 67,500 bbls/d net to Cenovus before the forest fire. Production has now essentially returned to this range. Total oil production across all of Cenovus's assets averaged about 218,000 bbls/d net in the first quarter.

The Athabasca natural gas operation, which was also shut down due to the forest fire, has returned to normal operations as well.