Imperial Oil Limited Enters Regulatory Permitting Phase to Expand Alberta In-Situ Oil Sands Production

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Imperial Oil Limited (TSE:IMO/AMEX:IMO) (Calgary Alberta) is currently immersed in two separate expansion projects at its Cold Lake bitumen production property (Plant 1029725). The Cold Lake property is located approximately 300 kilometers northeast of Edmonton Alberta.

Currently, 150,000 barrels per day of Bitumen is produced at Cold Lake making it Imperial's largest single upstream asset. Cold Lake accounts for nearly half of its daily hydrocarbon production and is also the largest in-situ oil sands operation in Canada. Initial production began in 1985 and proven reserves have grown since then to 850 million barrels in place.

The new expansion scheme being planned by Imperial will bring total daily production of bitumen to 180,000 barrels per day by late 2007/early 2008 and expand proven reserves by 350 million barrels. The Nabiye expansion (PEC 56000511) entails phases 14 - 16 and will add 30,000 barrels per day of production and 250 million barrels of proven reserves. The second project called North Nahihkan (PEC 56000571) is an extension of previous phases 9 & 10 and will add 120 million barrels of proven reserves.

Between Nabiye and North Nahihkan, a total of 1,150 to 1,400 new wells will have to be drilled. Cyclic Steam Stimulation Technology will be employed, which involves the injection of steam into the ground, a settling period and then the reversal of the same wells to pump out the bitumen. The wells will be situated on pads containing 20 - 30 wells per pad. Construction on both projects could come as early as 2005 and Imperial expects permitting approvals during the next six to nine months. Investment history at cold lake amounts to over $1.5 billion to date and these two projects represent a further $650 million investment at this property.

For more information of Alberta's Oil Sands Expansion, including a listing of 26 active Oil Sands projects in Alberta see the archived IIR Industry Alert*: Alberta's Oil Sand Energy Gold Mine Still Spawning Record Capital Investment Plans as New Production comes Online.

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