Business
Shell Canada provides update for in situ expansion plans and operations
Shell Canada provides update for in situ expansion plans and operations.
About this update from Mapath Capital Corp
[{"type":"text","content":"\n\n\n\nCALGARY, Dec. 13 /CNW/ - Shell Canada Limited provides the following\nupdate on its in situ oil sands developments.\n\n\nPeace River Expansion Plans\n\n\nToday Shell Canada achieved a significant milestone in its in situ growth\nplan with the filing of a regulatory application for a 100,000 barrel-per-day\nPeace River development.\n\n\nThe company has operated facilities in the area since 1979, and acquired\nadditional land and production through its acquisition of BlackRock Ventures\nin 2006. Shell Canada currently uses a combination of cold (primary) and\nthermal (horizontal cyclic steam) recovery methods to produce bitumen from its\nleases.\n\n\n\"Today's filing is an important step in our longer-term goal of\ndeveloping in situ production of 150,000 barrels per day,\" said Brian Straub,\nSenior Vice President Oil Sands, Shell Canada Limited. \"We plan to take a\nphased approach to growth that allows us to take advantage of cold\nproduction's cost benefits in the shorter term, following with thermal\nrecovery to maximize recovery efficiency. This combination of recovery\ntechniques will ensure optimal development of this huge resource base.\"\n\n\nCopies of Shell Canada's regulatory application will be available for\nviewing at public locations in Peace River, Grimshaw and Northern Sunrise\nCounty or by visiting Shell Canada's web site at www.shell.ca/peaceriver.\n\n\nIn Situ Operations\n\n\nRepairs to the Seal battery, located in the Peace River area, are now\ncomplete following a June 30 fire. Costs of repair were fully covered by\ninsurance and the facility is ready for full production.\n\n\nFollowing a successful drilling program and integration of BlackRock\nvolumes, Shell Canada achieved rates in excess of 25,000 barrels of bitumen\nper day from its in situ operations during the month of November and now has\nthe capacity for 30,000 barrels a day. However, production from Peace River\nhas been reduced due to apportionment on the Rainbow Pipeline, which\ntransports bitumen to market. Apportionment is expected to continue for\nseveral months.\n\n\nCautionary Note\n\n\nThis document contains \"forward-looking statements\" based upon\nmanagement's assessment of the Company's future operations. These\nforward-looking statements include references to anticipated growth and growth\nstrategy, plans for phased developmen...