Deep Creek outlines plans for oil sands pilot plant

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.


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.

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