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Laricina Energy Ltd. (Laricina) is pleased to announce the submission of a regulatory application on November 14, 2011 with Alberta Environment and Water (AENV) and the Energy Resources Conservation Board (ERCB) for a 150,000 barrel-per-day expansion at its Germain Project.
The expansion will be constructed in three phases of development (Phase 2-4) and would add to the already approved 5,000-barrel-per-day Germain Commercial Demonstration Project (Phase 1) for a total production capacity of 155,000 barrelsper- day of bitumen from the Grand Rapids Formation. The Germain Project is located 46 km northeast of Wabasca-Desmarais, Alberta in the west Athabasca region of northern Alberta.
Phase 1, was approved by AENV and ERCB in October 2010 and is currently under construction with first steam expected in the second quarter of 2013. Phase 2 will consist of a 30,000 barrel-per-day facility, while Phases 3 and 4 will each consist of 60,000 barrel-per-day facilities.
Pending regulatory approvals anticipated in 18 to 22 months, and available financing, initial construction of Phase 2 would commence in 2013, with first steam anticipated in the third quarter of 2015. Construction for Phases 3 and 4 would be expected to commence in 2016 and 2018 while first steam would be expected in 2018 and 2021, respectively.
A combination of in situ bitumen recovery technologies, steam-assisted gravity drainage (SAGD) and solvent-cyclic SAGD (SC-SAGD) is planned to be implemented in each phase. By combining solvent injection with steam, Laricina expects to lower the steam-oil ratio and carbon emission intensity for the same volume of bitumen produced by thermal processes alone.
The Germain Project includes components typical of SAGD operations such as multiwell production pads of horizontal well pairs; and surface facilities required to generate and distribute steam and solvents, gather well production, process bitumen and treat produced water for reuse with the facility. The 30,000 barrel-per-day Phase 2 is forecast to cost $1.1 billion to $1.5 billion, of which most remains to be financed.
To view a copy of the application, please visit the ERCB web site: https://www3.eub.gov.ab.ca/eub/dds/iar_query/ApplicationAttachments.aspx?AppNumber=1707256
Further information is made available at Laricina’s web site: www.laricinaenergy.com/regulatory.html#germain
About Laricina Energy Ltd.
Laricina is a non-public, Calgary based, responsible energy company that will contribute supply to the growing demand for crude oil through in situ oil sands development.
Laricina’s goal is to create value by developing Canada’s oil sands using innovative in situ technologies. The Company has a diverse portfolio of oil sands assets at varied stages of development, and experienced people with the requisite technical expertise. Laricina has identified five core areas with commercial production potential in excess of 600,000 gross barrels of bitumen per day from a large concentrated resource base with approximately 4.6 billion barrels net recoverable bitumen as determined by Laricina’s independent reservoir engineers. These assets include oil sands resources in the familiar McMurray Formation, the less developed and less mature Grand Rapids and the Grosmont and Winterburn carbonate plays, all of which offer significant production potential.
This information release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law including but not limited to final regulatory approval from the Energy Resources Conservation Board and Alberta Environment. Forwardlooking statements are frequently characterized by words such as “plan”, “expect”, “estimate”, “intend”, “believe”, “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on Laricina’s experience and current beliefs as well as assumptions made by, and information currently available to, Laricina, and are subject to a variety of risks and uncertainties including, but not limited to, those associated with resource definition, unanticipated costs and expenses, regulatory approvals, fluctuating oil and gas prices, and the ability to access sufficient capital to finance future acquisitions and development. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this information release are not exhaustive and readers are not to place undue reliance on forward-looking statements. Laricina disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this message, except as 2 required under applicable securities legislation. The forward-looking statements are expressly qualified by these cautionary statements.