Western Canada

Production

Athabasca Oil Sands Project
The company holds a 20 percent nonoperated working interest in the Athabasca Oil Sands Project (AOSP) near Fort McMurray, Alberta. Oil sands are mined from both the Muskeg River and Jackpine mines, and bitumen is extracted from the oil sands and upgraded into synthetic oil using hydroprocessing technology.

In June 2011, the AOSP Expansion 1 Project was completed, including start-up of the expanded Scotford Upgrader, increasing daily production design capacity from oil sands to approximately 255,000 barrels. In 2011, total daily production from oil sands averaged 210,000 barrels (40,000 net) of synthetic oil.

Exploration

Shale Gas
Through year-end 2011, the company increased the number of shale exploration leases held in Alberta to include approximately 253,000 acres (1,024 sq km) in the Duvernay formation. In third quarter 2011, drilling commenced on the first well of a multiwall program on these 100 percent-owned and operated leases. A long-term well test is expected to commence in fourth quarter 2012 when the first well is expected to be tied into third-party processing facilities.