Strathcona Resources BC Abandonment Case Study

Pengrowth Energy Inc. (purchased by Strathcona Resources in 2020) had 347 wells in Northeastern British Columbia that had been suspended for over 10 years. They were directed by the BC Energy Regulator to aggressively reduce their abandonment and reclamation liability. They decided to look to an outside resource to manage this project and focused early efforts on well abandonments.

Terminis was selected to manage the project and provided a full-service abandonment package that included programs, cost estimates, contracting services and providing wellsite and office supervision. Decommissioning of wellsite facilities and selling surplus equipment were also included in the program.

Year 1

  • Decommissioned and abandoned 109 wells.
  • 34 were winter access and required winter road construction.
  • 5 areas were completely abandoned and decomissioned on time and on budget

After 5 Years

  • 207 of the 347 wells have been abandoned and decommissioned and
  • 51 surface casing vent flows have been repaired.
  • All projects were completed on time and on budget.

In 2020 when oil prices crashed, Terminis received $2.25 million dollars from the Dormant Sites Reclamation Program. This contributed towards 29.4% of the capital requirements for the 2021 and 2022 programs. Consequently, Strathcona was able to continue with its aggressive abandonment program with lower commodity prices.

Strathcona Case Study Graph

Terminis is focused on abandonments and was able to bring efficiencies to the project with our integrated approach. The project was successful due to the coordinated efforts of both companies.

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