Laricina Energy Moves Forward with Proposed Germain Oil Sands Pilot Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Laricina Energy Limited (Calgary, Alberta) has re-filed regulatory permits for the proposed Germain oil sands commercial pilot plant, which will be located approximately 40 kilometers north of Sandy Lake, Alberta. The Germain project revised filing proposes a commercial demonstration pilot plant with an increased throughput capacity of 5,000 barrels per day (BBL/d) in place of the 1,800-BBL/d plant outlined in the previously approved filing.

The revised project also includes facilities to enable solvent injection and recovery with enhanced wastewater treatment and recycling abilities. This will enable Laricina Energy to test the formation for steam assisted gravity drainage (SAGD) technology, combined with cold solvent recovery technology. The Germain plant will test the productivity of the Grand Rapids and Winterburn formations, which are a combination of carbonates and clastics that contain a present net recoverable resource of approximately 4.1 billion barrels of bitumen.

Through further core drilling planned for the 2010-11 winter, the net recoverable resources form the Germain property could grow in size. The Germain property already has more than enough reserves to support 180,000 BBL/d of bitumen production, with a reserve life of over 25 years.

Laricina Energy has awarded IMV Projects Incorporated (Calgary) the engineering contract to progress the Germain plant through the regulatory process. The proposed facility will include a central processing plant and a single well pad with 10 SAGD well pairs. The scope of the project will also include an electrical substation, a utility corridor with roads and associated infrastructure, including storage tanks, a surface run-off pond, flow lines, and winter construction and operations camps.

Laricina Energy expects to receive regulatory permitting approval for the Germain plant in late 2010. Construction is expected to begin in the spring of 2011, with a completion date targeted for the second half of 2012. Upon the completion and successful testing of the Germain property, Laricina Energy will pursue the development of a 20,000-BBL/d commercial bitumen production field and processing plant. The commercial plant could become operational by 2015, with a series of 40,000-BBL/d modular production plants to follow.

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