Cenovus Energy reported a strong third quarter overall, and their Weyburn operations showed a return to consistent production levels after having production hurt by flooding earlier in the year.
Cenovus Energy reported a strong third quarter overall, and their Weyburn operations showed a return to consistent production levels after having production hurt by flooding earlier in the year.
With operations throughout western Canada, the company's cash flow rose by 56 per cent on stronger refining results and higher crude oil prices, with a generated cash flow of $793 million or $1.05 per share diluted in the third quarter.
Specifically in the Weyburn unit of operations, where Cenovus uses carbon dioxide to enhance oil recovery in the Weyburn Field, there was production of 16,000 barrels a day net in the quarter, which is consistent with the same quarter a year ago.
There were 150 wells the company was forced to shut in due to flood waters earlier this year, and some of these were slow to recover, which had a negative impact on production in the third quarter.
Also, the company's Bakken operation had production of 1,441 barrels a day, including royalty volumes, and the company drilled four wells in the third quarter.
Combined production from Bakken and Shaunavon is expected to reach 7,200 barrels a day by the end of 2011, lower than previously anticipated as flooding delayed work in both areas.
Operating costs for Cenovus's conventional oil and liquids operations increased 17 per cent to $13.41 a barrel in the third quarter compared with the same period a year ago. This was mainly due to higher workover activity, increased trucking activity and increased salaries and benefit costs.
Meantime, Cenovus was named to the 2011 Dow Jones Sustainability Index North America, and the Carbon Disclosure Leadership Index for Canada.
