Junior oilsands players receive legislative green lights on projects
Southern Pacific Resources and Laricina Energy get Orders in Council
By Dina O'Meara, Calgary Herald October 18, 2010
CALGARY - Junior oilsands players Southern Pacific Resources Corp. and Laricina Energy have received provincial approvals for their thermal projects in northeastern Alberta.
Both companies received an Order in Council from the Alberta legislature approving their steam-assisted gravity drainage projects, one of the last steps before the Energy Resources Conservation Board and Alberta Environment issue a final decision.
Southern Pacific received approval for its 12,000-barrels-per-day STP-McKay project, first filed with regulators in May 2009.
Also on Monday the company reported a nine-fold increase in total proved reserves at the project to 63.1 million barrels of oil equivalent from 6.8 million, as per GlJ Petroleum Consultants.
Meanwhile Laricina Energy welcomed the order approving the expansion of its Germain pilot project to a 5,000-barrel-per-day solvent cyclic one.
The company had received approval for an 1,800-barrel-per-day SAGD project in October 2009, but filed an amendment the following month boosting production through the use of solvents, as well as steam, said president Glen Schmidt.
Laricina expects to start construction early next year and have production by the second half of 2012.
As well, junior oil and gas company BlackPearl Resources said Monday it has received approval from the ERCB for its 600 barrel per day Blackrod thermal project.
The board also gave the company the go-ahead to develop the first phase of its polymer flood for the Moody oil development.
domeara@calgaryherald.com
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