Deer Creek Energy Limited Nearing Construction on Joslyn Creek Oil Sands Project

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Deer Creek Energy Limited (Calgary, Alberta) will begin construction on its 2,000 barrel per day Joslyn Creek demonstration plant in the third quarter of 2003. Located in the oil-rich sand Athabasca region of Alberta, about 50 kilometers northwest of Fort McMurray, the plant will produce Bitumen from oil sands using steam assisted gravity drainage (SAGD) technology.

Deer Creek awarded Colt Engineering Corporation (Calgary, Alberta) the engineering & procurement contract for the $20 million project. Deer Creek expects to drill one hundred wells in the first quarter of 2003 to further delineate the Joslyn Creek lease. Completion on the project is expected in mid 2004 and will ramp-up production over the next 12 to 18 months on the first phase.

Deer Creek expects to construct a further two phases in the near future and will submit an application to the government for a 10,000 barrel per day second phase in late 2003 with first production expected in 2006. The third phase $300 million is envisioned to produce a further 30,000 barrels per day of bitumen before the end of the decade. Deer Creek is exploring the feasibility of developing an oil sands mine in the Northern portion of its lease 24 which could yield a further 100,000 barrels per day.

Deer Creek Energy Limited is a privately held corporation with an 84% working interest in its 50,000 acre lease 24. Lease 24 has over 7.5 billion barrels of bitumen in place. Over 1.8 billion barrels of which are recoverable providing ample supply for a potential production of 160,000 barrels per day and a project life of 30 years.

IIR has been tracking the progress of the Joslyn Creek project since June of 2001.