Conventional Heavy Oil Production
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Our leases in the Muskwa region consists of Oil Sands Leases covering 95,059 contiguous gross and net hectares and is located within the Athabasca oil sands region within townships 83 to 89 and range 2 west of the fifth meridian and range 24 west of the fourth meridian, approximately 47 km from Wabasca and adjacent to the Pelican Lake producing areas.
We own 100% of the mineral rights in the areas covered by our leases in the Muskwa region. The first approved Muskwa Primary Recovery Scheme (PRS) covers 768 hectares. We have received application approval to expand the PRS to 4,608 hectares.
The Muskwa region is being developed in phases to manage capital exposures and ensure efficient development of the asset. The Company is currently producing heavy oil from the Muskwa heavy oil property, and Management currently estimates primary production potential of 1,600-1,800 bbl/d from the Muskwa heavy oil property by the end of 2012.