RE: TSX: Connacher Oil and Gas Limited ( CLL )Old News Pod #1.
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Connacher Oil seeks government approval for Algar
2007-06-19 13:58 ET - News Release
Mr. Richard Gusella reports
CONNACHER OIL AND GAS LIMITED FILES AN APPLICATION FOR 10,000 BBL/D ALGAR SAGD OIL SANDS PROJECT
Connacher Oil and Gas Ltd.'s 100-per-cent-owned subsidiary, Great Divide Oil Corp. (GDOC), has submitted an application to the Alberta Energy and Utilities Board (EUB), and Alberta Environment, for the Algar oil sands project. Upon approval, this will be Connacher's second 10,000-barrel-per-day, steam-assisted gravity drainage (SAGD) oil sands project, the first being Great Divide Pod One, which is scheduled for an August, 2007, commissioning.
GDOC is proposing to develop the Algar resources using SAGD, which is a proven technology that involves drilling horizontal wells, and constructing a processing facility that separates oil and water, generates steam and recycles water. It is expected the Algar accumulation which is to be developed will produce up to 1,600 cubic metres per day (10,000 barrels per day) of bitumen over a design life of 25 years. Accordingly, this proposed SAGD operation is estimated to recover about 13 million cubic metres (83 million barrels) of bitumen. Subject to receipt of approvals from the EUB, Alberta Environment and Alberta Sustainable Resource Development, start-up of construction would be anticipated to occur prior to midyear 2008. Produced bitumen will be diluted and delivered to a third party pipeline for shipment to refinery markets in Canada and the United States commencing in 2009.
Engineering and construction of the Algar project will provide an estimated 500 to 600 person years of total direct, indirect and induced employment in the province during the construction phase, while continuing project operations should generate 60 to 70 person years of annual employment. Over the life of the Algar project, a very significant royalty will also be payable to the Province of Alberta.