Muskwa Heavy Oil
Muskwa is an 'active area' for cold flow heavy oil production and represents over 22 billion barrels of petroleum initially in place. Sunshine signed a joint operating agreement with Renergy Petroleum for the Muskwa and Godin area oil sands leases which excludes all of Sunshine's oil sands rights within the carbonate formations in the leases.
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Muskwa Conventional Heavy Oil Production

Our leases in the Muskwa region consist of 21 Oil Sands Leases covering 101,715 contiguous gross and net hectares. The area 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.
Muskwa Production Update

thumb_muskwa_ops4.jpg Conventional heavy oil is being produced at three Muskwa pad locations.

Introduction of production enhancement technology through a joint venture with Renergy Petroleum (Canada) Co. Ltd. at Muskwa and Godin The Muskwa will be developed in phases to manage capital exposures and ensure efficient development of the asset.

Renergy will operate the assets under the JOA as the Operator. In return for a 50% working interest, Renergy has agreed to fund 100% of the initial joint operations conducted on the lands up to a maximum of CAD $250 million, which funding shall be deployed at the discretion of Renergy, as Operator, until the earlier of the point when (i) the sum contributed equals the Commitment Cap or (ii) average daily production from the lands over any 20 consecutive days period equals or exceeds 5,000 barrels per day.

Sunshine is pleased that the opportunity in its Muskwa and Godin areas has been recognized by Renergy through this significant agreement to provide both capital and other commitments.

 

Regulatory Applications