Peace River is one of the four large Oil Sands deposits located in Alberta, Canada. Oil Sands occur in about 70 countries around the world, but the bulk of these resources can be found in Alberta. During the 1970s, the potential of Oil Sands was realised, but was not economically viable. Early in the 21st century with the price for oil rising, it had reached the level where Oil Sands became cost-effective to develop these resources. However over recent years of commodity fluctuations, development has stalled with primary recovery of the Bluesky continuing a restricted capital spending and on existing infrastructure and the ultra heavy oil projects of Carmon Creek and others have been moth balled. While the light oil projects to the south west have accelerated. Costs have been dramatically reduced as the demand for services retracted. Technology continues to improve recovery rates and lower capital and operating costs.
• CEC has identified and captured a significant heavy oil reserve trapped in 3 horizons in the Manning area of northwestern Alberta consisting of 99 sections or 63,360 acres of Oil Sands leases.
• Developed a high confidence geological model for the area and specifically for the lands held,
• Confirmed the model with drilled wells, cores and seismic, 2 discovery wells, 3 development wells, 4 m23D seismic, 2D trade seismic
• Acquired more land on the trends,
• Obtained third party reviews of the reserves and geological models
The project plan consists of four projects, the first of the two primary targets, the Bluesky / Gething Oil Sands Channel sandstones, which is the major producing zone in the Peace River area of northern Alberta. The second of the primary targets, the Elkton Erosional Edge is a shallow (460 m) Mississippian-aged, high porosity, medium permeability, oil-saturated limestone. The third target, the Debolt Erosional Edge, is also a shallow depth limestone with an additional 400 million barrels PIIP (internal estimate) of heavy oil. The fourth target, the down dip Elkton and Debolt are directly southwest of the two erosional edges