Canadian oil company,
Cenovus Energy Inc.
) announced that it has received approval from the government of
Alberta for a new oil sands project. The project, christened
Grand Rapids, is located approximately 300 kilometres north of
Edmonton, in northern Alberta. Grand Rapids is expected to have
production capacity of 180,000 barrels per day (bbls/d) and will
be developed in multiple phases. The project is anticipated to
have a life of 40 years. Cenovus expects to make a decision on
the timing of development later this year.
CONOCOPHILLIPS (COP): Free Stock Analysis
CENOVUS ENERGY (CVE): Free Stock Analysis
PATTERSON-UTI (PTEN): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
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Cenovus applied for the permit in 2011 after a successful pilot
well drilling in the area for its steam-assisted gravity
drainage, or SAGD, oil-extraction technique.
The company's total crude oil output last year was 181,000 bbls/d
through two existing SAGD operations and conventional production.
The two SAGD projects currently producing are both equally owned
joint ventures with
), as is the third project now under construction and expected to
start commercial production in 2017.
The Grand Rapids project is the fourth and is adjacent to a
conventional oil-producing project, Pelican Lake, which produces
about 23,000 bbls/d. Cenovus has a fifth SAGD project known as
Telephone Lake with a 300,000 bbls/d capacity that is under
Headquartered in Calgary, Alberta, Cenovus is an integrated oil
company with ownership interest in two high-quality refineries in
Illinois and Texas. Cenovus' operations include increasing oil
projects and growing natural gas and crude oil production in
Alberta and Saskatchewan.
Cenovus enjoys the benefits of industry-leading oil sands assets
that position it for long-term growth. We believe the company
will remain focused on improving its operational efficiency
initiatives throughout 2014.
Cenovus currently carries a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can consider better-ranked players in the energy
Range Resources Corp.
Patterson-UTI Energy Inc.
). Both these stocks currently sport a Zacks Rank #1 (Strong