The Hangingstone Expansion Project is a joint venture project to develop an area adjacent to the current Demonstration Project by JACOS and Nexen Energy ULC (Nexen) in which JACOS holds a 75% participating interest as the operator, while Nexen holds the remaining 25% interest. Completing the front end engineering design and obtaining Scheme Approval from the Alberta provincial government in November, 2012, the partners have commenced full-scale development work aiming at production start-up in 2017.
The initial stage will result in bitumen production capacity of around 20,000 barrels per day. A decision on expansion of the facilities to bitumen production capacity of approximately 30,000 barrels per day will be made after start-up of the operation. Bitumen production will continue for around 30 years using the steam-assisted gravity drainage (SAGD) method, which has already been utilized at the Hangingstone Demonstration operation for more than 15 years.
Construction of the Central process facilities and the field facilities are underway. Drilling of horizontal well pairs commenced in August 2013.