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Sunshine owns and controls 100% of 467,969 hectares of leases (including 460,000 hectares of Oil Sands Leases and 7,969 hectares of PNG Licenses) (approximately 1,150,000 acres of leases), equivalent to approximately 4.93% of the Athabasca Oil Sands region and holds approximately 7% of the allocated oil sands lease area in that region.
Sunshine holds a premier land position that includes seven primary operational areas and has the expertise to extract significant value from its assets.
Cretaceous Sandstone
Sunshine is commencing its initial Cretaceous sandstone development construction, unlocking what Management anticipates to be an important area of focus for rapid SAGD oil sands production. This development will be executed in modular and scalable phases to manage project timing and cost pressures and to take advantage of evolving recovery technologies. The maximum size for any development phase is 20,000 bbl/d. These assets are anticipated to provide 35 years of production.
The Company estimates that the recovery rates for these assets will be between 52-63%. These assets are characterized by an expectation of reliable and predictable results due largely to the homogeneity of our large deltaic deposition reservoirs.
Application Updates
- Sunshine Oilsands Ltd. submits Commercial SAGD Application on March 31, 2010 to develop a commercial steam-assisted gravity drainage oil sands project at its West Ells location
- Sunshine Oilsands Ltd. submits Commercial SAGD Application on October 31, 2011 to develop a commercial steam-assisted gravity drainage oil sands project at its Thickwood location
- Sunshine Oilsands Ltd. submits Commercial SAGD Application on November 25, 2011 to develop a commercial steam-assisted gravity drainage oil sands project at its Legend Lake location
Carbonates
Carbonate Bitumen Areas & Subcrops
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Sunshine intends to continue to delineate its vast carbonates resource. Our carbonate holdings are still relatively undeveloped and hold the potential to provide significant upside as commercial extraction technologies emerge. Our Management team includes key operations and engineering personnel responsible for planning, modeling and successfully executing the carbonate thermal recovery program in the Issaran field in Egypt (one of only four recognized successful commercial carbonate thermal recovery programs in the world).
The Company has acquired significant carbonate leases and believes that these lands could yield up to 30% recovery rates.
The Company's Harper pilot is a first step in development of these lands as we initiate activity in the region. The initial pilot proved mobility and provided data on thermal responses of the reservoir. The Harper pilot extension will provide more thermal response data in the 2010-2011 winter program.
Application Updates
- The Harper Pilot application submitted October 2008 and approved by the ERCB on Nov. 27, 2009
- The Harper Pilot application extension, approved by the ERCB on Oct. 28, 2011
Conventional Heavy Oil
Sunshine is developing and producing conventional heavy oil in its Muskwa project area. Sunshine's initial project in Muskwa is forecast to achieve 1,600-1,800 bbl/d of primary heavy oil production by the end of 2012 with the Company expecting to increase and sustain these effective rates for over 14 years.
Recovery Scheme Approval Updates
- Sunshine Oilsands Ltd. Receives Approval of Primary Recovery Scheme for Muskwa Project Area on Jan 18, 2010.
- Sunshine Oilsands Ltd. Receives Approval of Primary Recovery Scheme Expansion for Muskwa Project Area on Oct. 6, 2011