PetroBank
Posted: Tue Jun 28, 2011 11:03 am
May Creek is the "Big Project" for their Heavy Oil Division. Production is expect to begin in 2012 and ramp up to 100,000 bopd over two years. - Dan
Contingent resources, as evaluated by McDaniel, are those quantities of bitumen estimated to be potentially recoverable using SAGD technology from known accumulations but are classified as a resource rather than a reserve primarily due to the absence of regulatory approvals, detailed design estimates and near term development plans.
CALGARY, ALBERTA--(Marketwire - June 28, 2011) - Petrobank Energy and Resources Ltd. (TSX:PBG - News) is pleased to announce an increase in our May River best estimate contingent resources to 624.1 million barrels effective June 1, 2011. To date this year, we have drilled 10 oil sands exploration wells at our May River property, which is comprised of 62 sections near Conklin, Alberta. This drilling further defined our resource and prompted the Company to request that our independent reserves evaluator, McDaniel & Associates Consultants Ltd. ("McDaniel"), update our May River property resource estimate.
All references to $ are Canadian dollars unless otherwise noted. Contingent resources set forth herein are in respect of our May River property only and exclude reserves and resources for PetroBakken and all other Petrobank properties.
HIGHLIGHTS
-- May River best estimate contingent resources increased 11% to 624.1 million barrels at June 1, 2011 (see "Resources and Contingent Resources"). -- May River best estimate contingent bitumen resources before tax net present value discounted at 8% increased 28% to $3.8 billion at June 1, 2011. -- May River proved plus probable reserves remains relatively unchanged at 90.6 million barrels. These reserves are not included in our contingent resource estimates. -- THAI(R) best estimate Exploitable Bitumen-in-Place ("EBIP") evaluated at 1.9 billion barrels versus steam assisted gravity drainage ("SAGD") best estimate EBIP of 1.6 billion barrels (see "Exploitable Bitumen-in- Place").
Based on the success of the current Whitesands Demonstration Project, Petrobank is planning a greenfield commercial THAI® project, the May River Project, with a central processing facility two kilometres from our current site. The project will be constructed in phases with the first module (Phase-1) having the capacity to produce 10,000 to 15,000 bbl/d of partially upgraded bitumen. Expansion will continue in stages with the production capacity ultimately reaching 100,000 bbl/d. Operationally, it will also allow design improvements and new production processes to be incorporated into the project. By including our overall plan for the 100,000 bbl/day project we also expect to improve the timing of the necessary regulatory approvals for the first phase and future phases.
Contingent resources, as evaluated by McDaniel, are those quantities of bitumen estimated to be potentially recoverable using SAGD technology from known accumulations but are classified as a resource rather than a reserve primarily due to the absence of regulatory approvals, detailed design estimates and near term development plans.
CALGARY, ALBERTA--(Marketwire - June 28, 2011) - Petrobank Energy and Resources Ltd. (TSX:PBG - News) is pleased to announce an increase in our May River best estimate contingent resources to 624.1 million barrels effective June 1, 2011. To date this year, we have drilled 10 oil sands exploration wells at our May River property, which is comprised of 62 sections near Conklin, Alberta. This drilling further defined our resource and prompted the Company to request that our independent reserves evaluator, McDaniel & Associates Consultants Ltd. ("McDaniel"), update our May River property resource estimate.
All references to $ are Canadian dollars unless otherwise noted. Contingent resources set forth herein are in respect of our May River property only and exclude reserves and resources for PetroBakken and all other Petrobank properties.
HIGHLIGHTS
-- May River best estimate contingent resources increased 11% to 624.1 million barrels at June 1, 2011 (see "Resources and Contingent Resources"). -- May River best estimate contingent bitumen resources before tax net present value discounted at 8% increased 28% to $3.8 billion at June 1, 2011. -- May River proved plus probable reserves remains relatively unchanged at 90.6 million barrels. These reserves are not included in our contingent resource estimates. -- THAI(R) best estimate Exploitable Bitumen-in-Place ("EBIP") evaluated at 1.9 billion barrels versus steam assisted gravity drainage ("SAGD") best estimate EBIP of 1.6 billion barrels (see "Exploitable Bitumen-in- Place").
Based on the success of the current Whitesands Demonstration Project, Petrobank is planning a greenfield commercial THAI® project, the May River Project, with a central processing facility two kilometres from our current site. The project will be constructed in phases with the first module (Phase-1) having the capacity to produce 10,000 to 15,000 bbl/d of partially upgraded bitumen. Expansion will continue in stages with the production capacity ultimately reaching 100,000 bbl/d. Operationally, it will also allow design improvements and new production processes to be incorporated into the project. By including our overall plan for the 100,000 bbl/day project we also expect to improve the timing of the necessary regulatory approvals for the first phase and future phases.