Osum Oil Sands Corp., which now ranks third in land position in the bitumen carbonates after Husky Energy Inc. and Shell Canada Limited, is moving closer not only to execution of its non-operated commercial assets, but also its own thermal development in more “conventional” SAGD/cyclic steam stimulation. And thanks to a recently closed $500-million private placement, Osum has the funds to do it. Osum says its 40 per cent interest in a 10,700-barrel-per-day commercial project at Saleski – the next step in a program that started with a carbonate pilot in operations since 2010 – is fully funded. As well, it has the ability to continue “pre-sanction commercial preparation costs” for Taiga SAGD project at Cold Lake. Osum is positioning itself for a leading position in the carbonates, based in part on a design for cash flow from Taiga.
“Taiga lets us maintain the path we are on,” says Steve Spence, Osum’s president and chief executive officer, adding that regulatory approval for the 35,000-barrel-per-day project is anticipated this year. “Taiga for us is the strong base that we’re very confident should go ahead, and confident of what its performance will be.”
On its shared Saleski lands with Laricina Energy Ltd., the regulatory process continues. Laricina recently reported an extension for the timeline of first steam to early 2014 rather than late 2013.