With a design capacity of 250 MMcfd of liquids-rich gas, the Cutbank plant came on stream about a week early and under its original budget of $233 million (Can.), Seven Generations said.
When combined with the expansion in late-2015 of the company’s 260 MMcfd Lator gas processing complex, Cutbank takes total gas processing capacity at Seven Generations’ Kakwa River project to about 510 MMcfd.
Startup of the Cutbank plant project included the construction of field gathering pipelines as well as a 29-km, 24-in. gas sales pipeline that connects the plant to Alliance Pipeline LP’s mainline system for transport of gas to the higher-priced US Midwest market.
Seven Generations already has contracted about 350 MMcfd in firm transportation capacity on Alliance’s pipeline, with that capacity due to step up incrementally to 500 MMcfd in late 2018, the company said.
With the addition of the Cutbank plant and existing plans to bring additional wells on stream, Seven Generations said it expects to boost Canadian production to 100,000-110,000 boe/d this year, which is an increase of 75% from its 2015 output of 60,000 boe/d.
In January, Seven Generations announced a capital budget of $900-950 million (Can.) for 2016, slightly lower from its capital spending of about $1.3 billion (Can.) during 2015.
The company’s 2016 investment program includes plans to complete and tie-in about 67 wells; finish construction of its seventh, eighth, and ninth Super Pads and related field-gathering pipelines; and wrap construction on a second 25,000-b/d condensate stabilizer at the Karr condensate conditioning facility.
Due to be completed during second-quarter 2016, the second Karr condensate stabilizer will bring overall conditioning capacity at the site to 50,000 b/d, Seven Generations said.