Petrominerales Ltd PMGLF

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Petrobank to Reach Full Saskatchewan Oil Output in 12 Months
By Jeremy van Loon - Jul 19, 2011
Petrobank Energy & Resources Ltd. (PBG), the Canadian oil developer with projects in three provinces, will reach full production at a C$100 million ($105 million) bitumen-extraction project in Saskatchewan in 12 months, Chief Financial Officer Peter Cheung said.
The Kerrobert facility will have output of 7,000 barrels a day with reserves of 3 million barrels, Cheung said today in a telephone interview. The project will be profitable with production of as few as 200 barrels a day, he said.
The company, based in Calgary, is using a technology that injects air into underground reserves to recover more of the oil, he said.
Petrobank gained the most in more than two years, climbing C$1.97, or 15 percent, to C$15.16 at 4 p.m. on the Toronto Stock Exchange. It was the biggest increase since November 2008.
Saskatchewan has Canada’s second-largest reserves of oil, including bitumen deposits in the northwest of the province and the Bakken formation in the southern region, according to the National Energy Board. About 95 percent of Canada’s crude reserves are in the neighboring province of Alberta.
To contact the reporter on this story: Jeremy van Loon in Calgary at [e-mail].
To contact the editor responsible for this story: Susan Warren at [e-mail].
Bloomberg