Sunshine Oilsands Ltd., Calgary, signed a framework agreement with an undisclosed international third party to pursue a joint venture involving its Muskwa and Godin area oilsands leases in the Athabasca area of Alberta.
The agreement provides for a 50-50 joint venture pursuant to which the third party will be responsible for investing as much as $250 million and contribute a thermal enhanced recovery technology to achieve production of 5,000 b/d from the oilsands leases. After this production threshold is achieved, the joint venture parties will contribute in proportion to their ownership positions.
The joint venture is subject to certain conditions and the entering into of binding agreements.
Meanwhile, Sunshine said that some work on the West Ells project site near Fort McMurray has been temporarily slowed. Work is expected to ramp up again once confirmation is received that additional funding has been committed. Sunshine is maintaining staff at site to continue with reduced work activities and to ensure safety of the worksite.
Sunshine, since incorporating in early 2007 has secured more than 1 million acres of oil sands leases or about 7% of all granted leases in the Athabasca area. The company’s principal operating regions are West Ells, Thickwood, Legend Lake, Harper, Muskwa, Goffer, Pelican, and Portage.