Operations at the Saleski pilot are being suspended pending future developments regarding the next stage of commercialization. The pilot achieved its primary objective, which was to demonstrate the potential for thermal bitumen production from the Grosmont formation.
Completion of activities is expected in October 2015.
IMPLICATIONS FOR NEXT STAGE OF DEVELOPMENT
The knowledge and experience gained through the pilot positions Osum to design a future stage of development that builds on activities to date to demonstrate the commercial production potential of the reservoir. This will be pursued when the market is supportive of these activities.
Osum’s current operational focus is on maximizing profitability from its Orion asset while we continue to assess optimal value creation strategies for Saleski. The Company continues to analyze and interpret data acquired from the JV Pilot for future application.
ABOUT THE SALESKI PILOT
- Operated since December 2010 and produced over 600,000 barrels of bitumen.
- Included 5 producing wells.
- A number of design modifications and experiments were applied throughout the pilot life-cycle, including the transition from SAGD to cyclic operations
ABOUT THE GROSMONT FORMATION
- Osum holds over 4 Billion barrels (Net) of Best Estimate Contingent Resources in the Grosmont formation (GLJ Petroleum Consultants. Saleski properties as at December 31, 2014).
- The Alberta Energy Regulator estimates that the Grosmont holds over 406 Billion barrels of oil in place.
- The Sepiko Kesik project, directly adjacent to the pilot, is wholly-owned by Osum and will be the first large-scale commercial project in the Grosmont Formation. In early 2013, Osum submitted an Environmental Impact Assessment (EIA) and commercial application for the Sepiko Kesik project.