CALGARY, Alberta, Dec. 21, 2017 (GLOBE NEWSWIRE) — Harvest Operations Corp. (“Harvest” or the “Company”) announced today its decision to re-sanction and complete the construction and commissioning of its 10,000 bbl/d BlackGold SAGD oil sands project near Conklin, Alberta. Harvest had previously suspended work in early 2015 dues to the drastic fall in oil prices. Major work at site has already commenced and will progress through the winter with the aim of commissioning wells and commencing steam injection in the second quarter of 2018, followed by electric submersible pump conversion in the third quarter.
Harvest, which is a subsidiary of Korea National Oil Corporation (“KNOC”), cites the stabilization of crude oil pricing and improved the operational and financial performance of Harvest’s conventional business as factors in its decision to move forward with BlackGold. With the support of KNOC, in 2017 Harvest was able to refinance $1.36 billion of maturing debt and last month raised an additional $250 million in financing, a portion of which will be used to fund the start-up of BlackGold. Harvest is presently reviewing other opportunities to raise non-debt sources of finance, the proceeds of which will be used to fund its conventional business and pay down debt.
HARVEST CORPORATE PROFILE
Harvest is a wholly-owned, subsidiary of KNOC. Harvest is a significant operator in Canada’s energy industry offering stakeholders exposure to exploration, development and production of crude oil and natural gas (Upstream) and an oil sands project under construction and development in northern Alberta (BlackGold).
KNOC is a state owned oil and gas company engaged in the exploration and production of oil and gas along with storing petroleum resources. KNOC will fully establish itself as a global government-run petroleum company by applying ethical, sustainable and environment-friendly management and by taking corporate social responsibility seriously at all times. For more information on KNOC, please visit their website at www.knoc.co.kr/ENG/main.jsp.