Lindbergh Thermal

Lindbergh Thermal Crude Oil Project

At Pengrowth, We are Working to Become a Leader in Thermal Oil, Adding Additional Long Life Reserves and Low Declines to our Portfolio

Our Lindbergh thermal property, the cornerstone of our strategy to become a sustainable energy producer, is currently in development. Rather than being located in the high-cost Fort McMurray area, Lindbergh is located in East Central Alberta. Here, we are developing this niche opportunity whose substantial upfront investment is expected to yield a production profile requiring much lower sustaining capital than conventional or other unconventional opportunities. These attributes, when combined with a low-decline rate, are anticipated to produce stable cash flows to support our dividend.

What is SAGD?

A Low Decline, Low Maintenance Capital Project, Fueling More Stable Free Cash Flow

In February 2012, we began steam injection into our Lindbergh pilot project, consisting of two well pairs. Pilot results have demontrated very competitive instantaneous steam/oil ratios and well productivity. Since their commencement, the two pilot well pair have outperformed expectations and have: 

  • Together, produced in excess of 1.6 Million Bbls of bitumen as of December 31, 2014, with a Cumulative Steam Oil Ratio (CSOR) of 2.1.
  • In aggregate, produced an average of approximately 1,689 Bbl/d of bitumen, with an ISOR of 2.5 in the fourth quarter of 2014.
  • Demonstrated faster than expected reservoir response to steam
  • Demonstrated lower than expected steam/oil and diluent blending ratios

12,500 Bbl/d Phase I Commercial Development  

Excellent pilot results and reserve potential gave us the confidence needed to accelerate the first 12,500 Bbl/day phase of commercial development, approved by our Board of Directors in January 2013. Development of Phase I continues to proceed on time, including the following progress: 

  • Regulatory and environmental approvals received in July 2013
  • Upon closing of dispositions announced in July 2013, Phase I development is notionally fully funded
  • Construction of central processing facilities and drilling of an additional 23 well pairs commenced in September 2013
  • Commissioning began in October of 2014
  • First steam in December of 2014 and first production early 2015

Projected Production and Free Cash Flow

  • Potential for 40,000-50,000 Bbl/d
  • Expected to generate free cash flow for many years

Established Market and Access to Refineries

  • Large demand for heavy oil within North America
  • Able to ship across North America via railway
  • Ability to refine heavy oil in North America, without having to ship overseas
  • Lindbergh is located near Hardisty, which is known for unit train loading, and other transfer hubs allowing for easy shipping of product
  • Located outside the high cost Fort McMurray oil sands fairway


Lindbergh Geology

Our Lindbergh project targets the Lloydminster formation whose greater depth, relative to the more heavily developed McMurray formation, creates higher pressure and better heat transfer. Other Lloydminster reservoir advantages include:

  • Clean, continuous sands
  • Expansive, sheet type accumulations, as opposed to channels
  • Lower instantaneous steam-oil ratio results in lower operational costs 

Lindbergh Development Team: The Capacity & Capability to Deliver

While thermal oil development is an unconventional operation, the Lindbergh project is helmed by a team that has successfully developed four previous thermal properties. With combined experience of ~65 years, this team has:

  • The "know-how" to implement this project
  • The talent to successfully develop and run the thermal project, ensuring high return

Key Lindbergh Team Members

The key members of the Lindbergh Team bring ~65 years of combined experience on Steam Assisted Gravity Drainage ("SAGD") and thermal development projects, including, but not limited to:

  • Deer Creek Energy/Total E&P (Joslyn Pilot & Commercial)
  • Connacher Oil and Gas Limited (Great Divide, Algar, Great Divide EIA)
  • Syncrude Canada and SynencoEnergy
  • Cenovus Energy (Christina Lake, Foster Creek, Borealis, Telephone Lake)
  • Husky Energy (Tucker Lake, Caribou, Saleski, Sunrise Joint Venture)

Lindbergh REGULATORY Filings

Please follow the links below to view the applications related to the Lindbergh SAGD Expansion Project. Please note these are very large files and will take some time to download. The files must be unzipped in order for the links to work.

    Application for Scheme Approval and EIA Assesment - December 2013 [Zipped PDF - 679.7 MB]

    EPEA & Water Act Application - January 2014 [PDF - 125.4 MB]

 Joint Notice of Application for the Pengrowth Lindbergh Expansion Project