By an OGJ Online Correspondent
CALGARY, Mar. 15�Deep Creek Energy Ltd., Calgary, has applied for regulatory approval to build a $20-30 million (Can.) pilot plant in the Alberta oil sands, 40 miles north of Fort McMurray.
The proposed plant would produce 2,000 b/d of oil by mid-2002. Deep Creek executives said the project possibly could lead to a $270 million, 30,000 b/d operation by 2004.
Deep Creek is seeking an equity partner on the project where it holds a 49,000-acre lease, which it acquired from Talisman Energy Inc. in December 1999.
In addition to building an all-weather road and a bridge on the lease, Deep Creek has drilled 12 test wells, which produced 239 b/d in February.
Both the pilot project and a possible commercial operation would use steam-assisted gravity drainage technology for heavy oil recovery. Deep Creek also is considering a pit mining operation on the lease by the end of the decade.
