By OGJ editors
HOUSTON, Aug. 4 -- Total SA plans to acquire Deer Creek Energy Ltd., Calgary, for $1.11 billion as part of its strategy of expanding heavy oil operations.
Deer Creek's board unanimously approved the offer and will recommend that shareholders accept the offer. Deer Creek holds 84% interest in the Joslyn oil sands project in Alberta's Athabasca region.
The Joslyn oil sands project is in the start-up phase (OGJ, Apr. 11, 2005, p. 22). The Alberta Energy and Utilities Board approved the first two phases of steam-assisted gravity drainage (SAGD). Joslyn's pilot is expected to become commercial in 2006 with production of 10,000 b/d.
Total already owns a 50% interest in the Surmont SAGD project, 125 km south of the Joslyn project.
