Baytex Energy Corp., Calgary, plans to begin pilot thermal recovery project next year on oil sands acreage it has acquired in the Cold Lake region of northeastern Alberta.
It acquired a 100% working interest in 46 sections of undeveloped oil sands leases on which a two-stage steam-assisted gravity drainage project has been approved. Total consideration was $120 million.
Baytex didn’t identify the seller. A map on its web site indicates the acreage encompasses Koch Exploration Canada Corp.’s Gemini project, for which provincial authorities have conditionally approved a 1,200-SAGD pilot and a 10,000-b/d development (OGJ Online, Mar. 14, 2012). The conditions relate to protection of ground and surface water.
Baytex said success of the pilot could be followed by a commercial 5,000-b/d project starting in 2014 with initial production in 2016.
It said the acquired acreage has potential for cold as well as thermal production.