CASE STUDY: HIVE Tops Cost and Schedule in Sustainable Well Pad Project

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Strathcona’s current operating asset, the Lindbergh SAGD Facility, operates at a capacity of 20,000 BPD. Utilizing a replicable well pad expansion model, and no increase to steam production rates at the CPF, Strathcona looks to maintain and potentially increase production throughputs within the current well pad infrastructure.

Hive Innovations was engaged by Strathcona as a preferred service provider from its legacy acquisition of Pengrowth Energy, completing projects at both the CPF and well pad facilities in the past. The sustainable well pad project was the first between these companies under the new ownership.

“I just wanted to extend our gratitude to the people involved in this project on how well it was organized, scheduled and executed from the Hive, Scovan and Gemini teams. It is rare to see that many loads get loaded on that type of time schedule.” – Kevin Smith, B&R Eckles

The Challenge

Commodity price decreases have put SAGD project viability under extreme scrutiny. Project metric requirements have become some of the tightest our industry has ever had to deal with. With a very strong reservoir at Lindbergh Strathcona Resources wanted to expand their well count however they needed to execute the project with aggressive targets for both schedule and costs.

The current well pad has a legacy well pair design and the project required a solution with a reduced cost as well as minimal modifications to the existing facility. The project needed a team with an innovative mindset and strong knowledge of the owners desired outcome.

The Solution

With a strong background in thermal well pad designs, optimized modularization mindset, and efficient construction execution teams, Hive Innovations was engaged based on the following criteria:

A project team with strong understanding of the existing facility and new facility requirements
Best-in-class well pair and infill well design
Ability to adapt the contract model to meet the needs of the owner
Innovative mindset and approach to design and integration
Strong vertically integrated team within Hive Innovations with a common goal of project success covering:
1. Engineering
2. Shop Fabrication
3. Field Construction
Achieving some of industries most aggressive pricing on sustainable well pad development
Ability to integrate local contractors into the project with minimal effect on aggressive project budget and schedule
Utilization of unique project tools to maintain project schedule during a pandemic – ie) virtual walkthroughs, web hosted meetings and documentation procedures

The Results

The project achieved a variety of benefits to Strathcona including reductions in both cost and schedule. The ability of both Strathcona and Hive to use innovation and creative thinking, allowed the following performance milestones to be achieved: