Athabasca Oil Corp. achieved first oil at Hangingstone in July, and now has 15 well pairs on production with an additional six on circulation, the company said Sept. 28.

Bitumen production has averaged 3,200 barrels per day (bbl/d) to date in September with current production in excess of 4,000bbl/d. Reservoir response, plant reliability and initial production ramp-up continues to meet management's expectations.

Athabasca has already achieved the low end of its 2015 year-end thermal oil exit guidance of 3,000bbl/d to 6,000bbl/d, the company said. Production is expected to increase to 12,000bbl/d in the fourth quarter of 2016, with no additional development capital acquired.

In the Duvernay, Athabasca resumed drilling operations in early September on a two-well pad in the volatile oil window at Kaybob East, section 5-65-18W5. Completions operations are expected in October, and the onstream date is scheduled for the first quarter of 2016. Multiwell pad efficiencies, a new fit-for-purpose rig and lower service costs will improve costs overall, the company said.

Athabasca also spudded a Montney well at Placid 11-17-60-23W5, following two successful wells drilled there in winter 2015. The 2015 light oil capital guidance of CA$203 million and exit rate guidance of 7,000boe/d to 8,000boe/d is still expected, the company said. On Sept. 28, the company had about CA$ 687 million in cash and cash equivalents. 2015 year-end funding is expected to be more than CA$800 million.

Athabasca Oil Corp. operates in the Western Canadian Sedimentary Basin and is based in Calgary, Alberta.