Brion Energy Corp., Calgary, has received Alberta Energy Regulator approval of the 50,000-b/d first phase of its large Dover oil sands project about 95 km northwest of Fort McMurray, Alta.
Brion, formerly called Dover Operating Corp., will use steam-assisted gravity drainage to develop bitumen in the Lower Cretaceous McMurray formation.
The company plans five phases of development and two SAGD plants, with production capacity reaching 250,000 b/d.
AER approved the first Dover phase with 10 conditions, most having to do with control of air emissions, subject to approval of the Lieutenant Governor Council.
Brion expects ultimate recovery of 4.1 billion bbl of bitumen over the 50-year life of the project.