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Deer Creek And Ensign Spud First SAGD Wells Using Slant Automated Drilling Rig

[Daily News] Ensign Energy Services Inc., an international oilfield services contractor based in Calgary, and Deer Creek Energy Limited, a Calgary-based oilsands company, have announced the mobilization of Ensign Rig No. 118, the first innovative, specifically designed slant automated drilling rig (ADR) for steam assisted gravity drainage (SAGD) applications.
Ensign Rig No. 118 ADR will be used to drill the initial 17 well pairs required for Deer Creek's Joslyn Project SAGD Phase II 10,000 barrels of bitumen per day expansion. Drilling on the first well commenced June 8.

Ensign's ADR technology has been utilized in conventional operations since 1995 and significantly improves drilling speed while minimizing operator exposure to hazards. This will be the first time this system is used for drilling SAGD or slant wells.

"The Ensign ADR technology is very innovative," said Mark Montemurro, vice-president Thermal of Deer Creek. "We are very excited to use this system on our project and benefit from reduced drilling time, safer operations and flatter well profiles resulting in enhanced oil recovery and efficient well performance."

Deer Creek's SAGD wells will average 95 metres of vertical depth and a horizontal length of 600 metres for a total average measured depth of 1 050 metres. The specific design of the hydraulic driven top drive assembly makes the rig smoother to operate and more flexible than conventional slant rigs improving drilling speed and down hole steering. Each SAGD well will take approximately seven days to drill.

"This is a tremendous opportunity for Ensign to build on our industry leading technology and established business relationship with Deer Creek as we step into the oilsands wave of the future," said Robert Geddes, president of Ensign's Canadian Oilfield Services.

Deer Creek is a publicly traded, Calgary-based oilsands company engaged in the development of its Athabasca oilsands deposits through SAGD and mining extraction methods. The company plans to develop the Joslyn Project by way of four phases of SAGD recovery and four phases of oilsands mining recovery, which is designed to produce more than 200,000 barrels of bitumen per day for more than 30 years. Deer Creek has an 84% working interest in and is operator of the Joslyn Project.

Ensign is an international oilfield services contractor based in Calgary.