The Three Amigos Three Commercial SAGD Projects
• Reford – approved for 6,000 bopd (could be expanded to 10,000 bopd), is shovel ready for commercial development
• Kelfield – approved for 10,000 bopd, is shovel ready for commercial development
• Handel – resource size supports at least 6,000 bopd with current geological mapping – delineation of the size and extent of the resource will be determined with additional strat well drilling
• Only 30 km from rail/pipeline terminals at Unity and Kerrobert
• Operating costs for Saskatchewan thermal heavy oil sector ranging from $14/bbl to $18/bbl depending on SOR
(steam to oil ratio) performance and price of natural gas for steam generation
• Initial development capital of ~$4/bbl; sustaining capital of ~$6/bbl
• Royalties of 5% before payout | 4% plus 20% net profits interest (NPI) after payout
~80 prospective sections along trend
Reford and Kelfield SAGD Projects – Shovel Ready
• Reford (6,000 – 10,000 bopd) and Kelfield (for 10,000 bopd) are shovel
ready for commercial development
• 15 year RLI (reserve life index)
• Full development costs of $9 - $10/bbl
• Total stabilized production potential of 16,000 – 20,000 bopd
• Initial Capital Development Cost of $25,000 - $30,000 per flowing barrel
• Reservoir characteristics of 20m oil column, 90% oil saturation, 6+ darcy
permeability, and 34% porosity