Grizzly seeks to develop Thickwood oil sands

Grizzly Oil Sands ULC has applied to the Alberta Energy Resources Conservation Board for in situ development of oil sands resources at Thickwood, 58 km northwest of Fort McMurray, Alta., reports Gulfport Energy Corp., Oklahoma City, which owns 25% of the private Calgary operator.

Grizzly plans to use steam-assisted gravity drainage (SAGD) and cyclic steam stimulation (CSS) to produce 12,000 b/d of bitumen for up to 40 years. An independent firm has estimated ultimate recovery at 107 million bbl.

The Thickwood project will include a plant with two 6,000-b/d processing units, four SAGD well pads, as many as 33 CSS well pads, and associated facilities.

Gulfport said Grizzly expects to file environmental documents with Alberta Environment and Sustainable Resource Development in January. It expects production to begin about 18 months after regulatory approvals, expected in 12-18 months.

Grizzly discovered the Thickwood deposit during the 2006-07 winter drilling season. Since then it has drilled 59 coreholes and acquired 3D seismic data.

Grizzly holds a 100% working interest in 38,400 acres in the project area, which is near existing bitumen production.

The Cretaceous Wabiskaw D sand covers the entire block. Grizzly describes it as a “clean, blocky sand up to 20 m thick” with no bottom water or top gas.

The thinner, laterally extensive Wabiskaw A offers additional potential. It holds 1.1 billion bbl of bitumen initially in place, Grizzly says.

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