Sunshine Oilsands Ltd., Calgary, has signed the previously announced joint operating agreement with Renergy Petroleum (Canada) Co. Ltd., an affiliate of Changjiang Investment Group Co. Ltd. of Hong Kong, with respect to Sunshine’s Muskwa and Godin area leases in Alberta’s Athabasca oil sands area (OGJ Online, Aug. 20, 2013).
The agreement excludes Sunshine’s oil sands rights in the carbonate formations on the leases.
Renergy will operate the assets under the JOA. In return for a 50% working interest, Renergy has agreed to fund 100% of the initial joint operations conducted on the lands up to a maximum commitment cap of $250 million (Can.).
Renergy is to deploy the funding at its own discretion until the earlier of the point at which the sum contributed equals the commitment cap or daily production from the lands equals or exceeds an average 5,000 b/d over any 20 consecutive days.
Sunshine, incorporated in 2007, holds more than 1 million acres of oil sands leases or about 7% of all granted leases in the Athabasca area.