Alliance Pipeline notified Long Run Exploration Ltd. on 7 August 2015 of an operational event on its system, which required suppliers to suspend natural gas injections into its pipeline. Alliance advised Long Run that the shutdown was a result of hydrogen sulfide entering the pipeline from an upstream operator, which impacted the Alliance mainline pipeline. Alliance declared this to be a force majeure event.
Suspension of natural gas
Long Run was directed by Alliance to suspend natural gas injections into the Alliance Pipeline system starting from 9:00 am on 7 August 2015 and was able to restart at 8:00 am on 13 August 2015. This suspension resulted in a deferral of approximately 21.5 million ft3/d of natural gas production and approximately 2500 bpd of oil and NGLs over the six days, representing approximately 20% of Long Run's overall production for the same period. This pipeline outage primarily affected Long Run's Deep Basin Edson field, and the associated natural gas and liquids volumes being produced from the area.
How much will this affect its production?
Long Run expects this downtime will result in a reduction of 2015 third quarter production of approximately 400 boe/d. The company estimates that funds flow from operations will also be reduced by approximately US$0.5 million in the third quarter as a result of the production downtime.
Long Run continued to keep greater than 95% of its total oil production on stream during this interruption.
Edited from press release by Stephanie Roker