Osum’s acquisition of the Orion play will add to the company’s value, Osum’s chief operating officer told those gathered at a Nov. 6 town hall.
“We’re one of the largest Canadian private oil sands companies,” with a production protential of 500,000 barrels per day, Rick Walsh said in his presentation to update those attending on what the company is doing.
Osum acquired the Orion play, formerly owned by Shell, earlier this year and began operations there on July 31, said Walsh.
“We wanted to assume control in a stable, safe, effective fashion,” he noted. “It’s a terrific first step.”
The production for the site’s first two months was 7,500 barrels per day, said Walsh, adding there was another good thing that happened from the deal.
“We were actually able to convince Orion folks to come across and become Osum employees.”
Indeed, said Walsh, Osum is looking for employees for the Orion play, as the company is discussing possible expansion.
Walsh said Orion is located 16 kilometres from Osum’s Taiga site, which, he said, is “a shovel ready project that we have regulatory approval for.”
Walsh said having the Taiga project also helped with the Orion acquisition, as “we’ve learned a lot about Orion over the years from Taiga” and the former will help build the latter.
Walsh also spoke about the company’s Saleski Grosmont Carbonates play,which measures 200 kilometres from southeast to northwest.
“We’re in the sweet spot and we’re also close to infrastructure,” he noted, adding there are 400 billion barrels of oil in place there.
The bitumen in the rocks at Saleski make the play “very productive,” and the rock is naturally fractured, said Walsh.
In response to a question, Walsh said there are currently no plans to take Osum public, but that hasn’t been ruled out for the future.
The current state of oil prices is a concern, but not a panic, to Osum, said Walsh.
“If (the situation) persists, it could certainly impact the timing of growth,” he noted, adding he doesn’t see it having an impact on current operations.