Operating costs of Bitumen is now about $40 per barrelA good example is Athabaska Hangingstone bitumen asset.
That started out about 10 years ago as a pilot project much like Sawn Lake.
Its now producing over 10,000 barrels per day of diluented bitumen .
Net price received after diluent costs was just over $85 per barrel, with net back of $43.50 per barrel.
That is, operating costs were just over $41.50 per barrel.
The great thing about heavy oil is that the Decline rate is very small and reserve life is usually about 100 years .
Sawn Lake bitumen is in the more favourable Bluesky formation and shallow .
SAGD is a long proven production method.
Angora has added a special produced water Boiler to reduce costs further.
If everything works out, Sawn Lake will be a huge winner..