IPC's Blackrod Phase 1 Achieved First Oil in Alberta, Delivering 30,000-bopd SAGD Capacity Within an $855 Million Budget

International Petroleum Corporation (IPC) announced on June 15, 2026 that Blackrod Phase 1 in Alberta achieved first oil on May 31, 2026. The Stockholm- and Toronto-listed company holds a 100 percent working interest in the project and completed it one quarter ahead of its original schedule. CEO William Lundin described the milestone as the largest new greenfield thermal project developed in Alberta in a decade.

Phase 1 Capital: On Budget at $855 Million

IPC spent $855 million (US) on Phase 1 capital, against an original estimate of $850 million. Steam injection at the SAGD wells commenced in January 2026, triggering the bitumen migration process that produces first oil. The company reports sustaining capital intensity below $5 per barrel, consistent with the long production life typical of Alberta SAGD reservoirs.

Phase 1 targets a plateau rate of 30,000 barrels per day, expected to be reached by late 2027. Regulatory approval for the Blackrod asset covers up to 80,000 barrels per day across all future phases. The Grand Rapids Pipeline connects Blackrod to Edmonton-area markets, securing takeaway capacity for the Phase 1 production ramp.

Revenue Math at Current WCS Pricing

Western Canadian Select (WCS) crude was assessed at $68.40 per barrel as of June 15, 2026 per OilPrice.com data, reflecting a 16-hour reporting delay typical for that benchmark. WTI crude settled at $76.65 per barrel on Tuesday's CME close, down $4.10 or 5.1 percent, per OilPrice.com. The WCS-WTI differential was $8.25 per barrel based on those two data points.

At 30,000 barrels per day and WCS at $68.40 per barrel, Blackrod would generate gross oil revenue of $748 million per year at plateau. IPC's total Phase 1 capital of $855 million would be matched by gross revenue in 13.7 months at plateau production. That comparison excludes operating costs, royalties, and financing charges, but it establishes the scale of the asset relative to the investment already made.

Alberta Oil Sands Pricing Environment

IPC begins production into a WCS market where prices fell in early June 2026 following the US-Iran Hormuz deal. As Oil Authority reported earlier today, WCS fell below $63 per barrel when WTI dropped to $75.78 per barrel after the Hormuz agreement, affecting Canadian Natural Resources, Cenovus Energy, Suncor, and Imperial Oil. WCS recovered to $68.40 per barrel as of June 15 from that lower level.

The recovery from the trough below $63 to $68.40 improves IPC's realized netback on its first Blackrod barrels relative to what Alberta's four major oil sands operators experienced in the immediate post-deal period. Phase 1 capital is already spent; future economics turn on the WCS-WTI differential and operating costs IPC has not publicly disclosed for Blackrod. The project's sustaining capital guidance below $5 per barrel sets a low ongoing reinvestment threshold for the 25-year production life.

Reserves Scale and Company Background

Phase 1 holds proved-plus-probable (2P) reserves of 311 million barrels of oil equivalent, according to the June 15 press release. The full Blackrod lease holds unrisked contingent resources of 1.1 billion barrels across all potential phases. IPC financed the project in part through a $450 million bond placement completed in September 2025, and projects Phase 1 to produce for 25 or more years at 30,000 barrels per day.

IPC is listed on Nasdaq Stockholm and the Toronto Stock Exchange under the ticker IPCO. The company has analyst coverage from BMO Capital Markets, ATB Capital Markets, and Beacon Securities, among others. Most large-scale Alberta oil sands thermal projects are operated by Canadian majors or US supermajors through subsidiaries; IPC's entry as a 100 percent working interest greenfield developer is unusual in that ownership structure.