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Blackrod, Alberta
KEY FACTS
| Working interest | 100% | 
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| Land |
34,560 net acres |
| 2P reserves |
none assigned |
| 2C resources |
619 MMboe |
| API |
9° oil |
| 2011 production |
none |
| Depth |
300 metres |
| Formation |
Grand Rapids |
| Production Potential |
70,000 boe/day |
In 2010 we reached a number of milestones with our SAGD project at Blackrod, located in the Athabasca oil sands. These milestones included:
- Acquiring the remaining 20 percent working interest in the project by purchasing our partners' interest for $21 million. BlackPearl now owns 100 percent of this project;
- Receiving regulatory approval to construct and operate a SAGD pilot on our lands; and
- Completing an independent contingent resource assessment of the property which indicated a best estimate recoverable resource of 619 million barrels of bitumen, with peak production capacity of up to 70,000 bbls/day.
The next steps in the development of this property are to complete construction of the pilot and commence injection of steam. As part of the pilot, in 2010 we completed drilling the SAGD horizontal producer and injection wells, the water source and water disposal wells, as well as several vertical monitoring and observation wells. The steam generation equipment was installed on-site and the 31-kilometre access road was also completed.
During the first quarter of 2011, water handling facilities are being installed. Steam injection is expected to begin during the second quarter with initial results from the pilot expected 6 to 12 months following initial steam injection.
We have also commenced the background work necessary to submit a commercial development application for the property. This work includes collecting environmental baseline data, a 3D seismic program and additional delineation drilling. This application will be to develop a portion of our lands to support bitumen production of up to 40,000 bbls/day. We are planning to file the application in the first quarter of 2012.
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