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Hangingstone Facilities

Greenfire operates two SAGD oil production facilities within the same Tier-1 reservoir at Hangingstone, situated 50 km south of Fort McMurray in Northern Alberta.

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Hangingstone Facilities

Hangingstone Facilities

Optimizing two SAGD facilities with the same Tier-1 reservoir

Hangingstone Expansion Asset

The Expansion Asset has well-delineated reservoirs in approved developments with currently booked Total Proved reserves anticipated to support high facility utilization rates for over three decades

Location

Acquired

  • September 2021

Characteristics

  • 55 km south of Fort McMurray, Alberta
  • Greenfire owns a 75% working interest and is operator
  • Connected to expandable pipeline infrastructure for diluted bitumen and diluent
  • Greenfire estimated Debottlenecked Gross Production Capacity: 35,000 bbls/d
  • No new well pairs have been drilled since the facility was commissioned in 2017; first Refill well was drilled September 2023

Hangingstone Demo Asset

The Demo Asset shares the same Tier-1 reservoir as the Expansion Asset. Over nearly two decades, declines at the Demo Asset have remained relatively low without the need for new well pair drilling.

Location

Acquired

  • April 2021

Characteristics

  • 50 km south of Fort McMurray, Alberta
  • Greenfire owns a 100% working interest and is operator
  • Access to expandable pipeline infrastructure for diluted bitumen and diluent via Expansion
  • Greenfire estimated Debottlenecked Production Capacity: 7,500 bbls/d
  • No new well pairs have been drilled since 2013 and zero infill or Refill wells have been drilled as of October 2023

Infill & Redevelopment Infill (“Refill”) Producing Wells

Greenfire’s Hangingstone Expansion presents low risk opportunities to further enhance production using proven industry best practices with limited capex, including drilling redevelopment infill (“Refill”) producer wells and extended reach refill producer wells.

Infill Producer Wells:

  • Greenfire drills additional infill producing well between two existing SAGD wellpairs to produce incremental pre-heated bitumen
  • Requires appropriate pad layout and has incremental costs and time to build, including casing, drilling and cementing a new wellbore along with additional tie-in to surface facilities.

Refill Producer Wells:

  • In a refill producer well, Greenfire re-enters an existing SAGD producer to drill a new refill producer between two existing well pairs targeting incremental production of pre-heated bitumen between SAGD well pairs
  • Requires limited additional drilling, work, procurement and timelines given existing producer wellhead and casing are utilized along with tie-ins to existing facility infrastructure

Extended Reach Refill Producer Wells:

Greenfire realizes additional productivity and cost benefits from extended reach redevelopment refill producer wells.

These wells utilize a single refill producer across two existing SAGD producer pads to access incremental pre-heated bitumen:

  • Wells targeting 1,600 meters of total horizontal length across two existing 750 meter SAGD producers
  • Anticipating incremental recovery compared to two refill wells at prevailing SAGD producer lengths
  • Industry commonly drilling 1,600+ meter producers

These wells support a twofold potential savings on drilling, wellhead, and facilities costs compared to standard infill producer wells.

Infrastructure and Moving our Product

Greenfire’s assets are strategically located, providing access to regional infrastructure and sales markets across North America, including heavy oil refining destinations in the US.

  • Regional infrastructure in close proximity to the Hangingstone assets enables firm and interruptible transportation for blend and diluent without burdensome long-term commitments
  • Marketing strategy focuses on Edmonton as the primary sales point, which opens access to diverse North American markets for superior value capture

Symbiotic Relationship with Trafigura

Trafigura is one of the world’s top three independent oil and petroleum product traders.

As a strategic stakeholder to Greenfire, Trafigura is our exclusive petroleum marketer and provides funding, transportation and logistical support.

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