Business
Cenovus oil sands production climbs 17% in second quarter
Company starts producing oil from Christina Lake phase E Total oil production was m...
About this update from Cenovus Energy Inc.
[{"type":"text","content":"\n\n\nCompany starts producing oil from Christina Lake phase E\n\n\n\nTotal oil production was more than 171,000 barrels of oil per day\n (bbls/d) net in the second quarter, a 10% increase when compared with\n the same period in 2012.\n\n\nCombined oil sands production at Foster Creek and Christina Lake\n averaged nearly 94,000 bbls/d net in the second quarter, up 17% from a\n year earlier. Production at Christina Lake climbed 35% to an average of\n more than 38,000 bbls/d net.\n\n\nChristina Lake phase E started steam injection in June, with first\n production achieved in mid-July.\n\n\nOperating cash flow increased 4% to $1.1 billion in the second quarter\n when compared with the same period a year earlier.\n\n\nCash flow was $871 million in the quarter, a 6% decrease when compared\n with 2012, mainly due to a conventional oil pre-exploration expense and\n higher cash tax.\n\n\nDiscovered bitumen initially-in-place increased 66% since 2009 to 93\n billion barrels, reflecting the success of Cenovus's stratigraphic\n drilling program in converting undiscovered resource inventory to\n discovered.\n\n\nAn agreement to sell Cenovus's Shaunavon tight oil asset for $240\n million (plus closing adjustments) was announced in early June and\n closed in early July.\n\n\n\n\n\n\n\"At Cenovus, we continue to play to our strengths and deliver on our\n commitments,\" said Brian Ferguson, Cenovus President & Chief Executive\n Officer. \"We have a track record of predictable and reliable\n development of our vast oil sands resources. In July, we started\n producing oil at our tenth expansion phase in the oil sands, Christina\n Lake phase E, and we expect to bring on a new phase of production in\n each of the next several years.\"\n\n\n\n\nProduction & financial summary\n\n\n\n\n(for the period ended June 30)\n Production (before royalties) \n\n\n2013\nQ2\n\n\n2012\nQ2\n\n\n% change\n\n\n\n\nOil sands total (bbls/d)\n\n\n93,797\n\n\n80,317\n\n\n17\n\n\n\n\nConventional oil1 (bbls/d)\n\n\n77,330\n\n\n75,249\n\n\n3\n\n\n\n\nTotal oil (bbls/d)\n\n\n171,127\n\n\n155,566\n\n\n10\n\n\n\n\nNatural gas (MMcf/d)\n\n\n536\n\n\n596\n\n\n-10\n\n\n\n\nFinancial\n($ millions, except per share amounts)\n\n\n \n\n\n \n\n\n \n\n\n\n\nCash flow2\n   Per share diluted\n\n\n871\n1.15\n\n\n925\n1.22\n\n\n-6\n\n\n\n\nOperat...