Inert gas injection set in Athabasca oil sands

March 10, 2005
Paramount Resources Ltd., Calgary, is evaluating a technology fix to replace pressure dissipated when gas associated with potentially recoverable bitumen is produced from the Athabasca oil sands of northeastern Alberta.

By OGJ editors

HOUSTON, Mar. 10 -- Paramount Resources Ltd., Calgary, is evaluating a technology fix to replace pressure dissipated when gas associated with potentially recoverable bitumen is produced from the Athabasca oil sands of northeastern Alberta.

Paramount plans to inject as much as 3 MMcfd of inert compressor exhaust gases in the Surmont area into the Cretaceous Wabiskaw-McMurray oil sands in an attempt to maintain reservoir pressure while allowing the production of a similar volume of natural gas to be produced from previously shut-in gas pools.

The pilot project, to start up in April, would also enable the sequestration of as much as 400 Mcfd of carbon dioxide.

"If successful, Paramount is hopeful that this experiment will offer some resolution at Surmont to the 'gas over bitumen' issue as well as provide for sequestration opportunities for carbon dioxide," the company said.

The Alberta Energy and Utilities Board ordered the interim shut-in of gas production in September 2003 in an effort to stem pressure depletion in the oil sands (OGJ Online, July 29, 2003). The initial order, intended to protect ultimate bitumen recovery, affected 240 MMcfd of gas, then about 2% of Canada's output.

Paramount hiked its oil sands acreage 70% last year, acquiring 51,000 acres for $2.7 million and bringing the total to 120,000 acres, mainly in the Leismer and Surmont areas. The company plans to drill 15-20 oil sands evaluation wells after having drilled 17 such wells in 2004.

"The company is optimistic that the results of the oil sands evaluation program will allow it to bring forward a 3,000 b/d steam-assisted gravity drainage pilot application in 2005," Paramount said.