Study upgrades Hoole oil sands resource

Cavalier Energy Inc. has received an independent assessment of its Hoole oil sands leases in Alberta indicating probable reserves of 93 million bbl of recoverable bitumen in sections for which it is seeking approval for in situ development (OGJ Online, Dec. 17, 2012).

Cavalier, a wholly owned subsidiary of Paramount Resources Ltd. of Calgary, said the evaluation ascribed a net present value of $379 million (Can.) to its initial 10,000 b/d steam-assisted gravity drainage project, covering about two sections of land, under review by provincial authorities.

McDaniel & Associates Consultants Ltd., which conducted the study, estimated economic continent resources in 54 other sections at 719 million bbl in the target Grand Rapids formation with NPV of $1.949 billion.

Before the new assessment, all volumes in the initial project area were considered economic contingent resources.