New Technology For Cold Lake

Abstract

Abstract Carlyle Energy Ltd. became involved in 1981 when the U.S. owners of the technology were attempting to raise funds in Canada for a heavy oil pilot project. Cold Lake Heavy Oil Ltd. (CLHO) was formed: 45% by Carlyle (55% of the voting control) and 55% by three parties in the U.S. who own and developed the technology. Carlyle commissioned studies by A.J. Gruy & Associates, Inc. of Dallas and McCallum, Stewart and Associates in Calgary to study and review the material available relative to the application of the process to Cold Lake type reservoirs. A pilot project was beyond their financial resources so time was spent interesting others in CLHO. In late 1982 and early in 1983, AOSTRA financed a laboratory study of the technology by the Alberta Research Council. Their recommendation was that a field pilot project be undertaken. CLHO was able to negotiate a staged farm-in of the Gulf lease and Bow Valley Industries Ltd. agreed to participate and operate Phase A of the pilot project. The technology, if successful, will greatly enhance the recovery of these heavy oils. Project Bow Valley Industries Ltd. and CLHO (a 45% subsidiary of Carlyle Energy Ltd.) has initiated Phase A of an in-situ oil sands bitumen recovery project located approximately 30 km north of Grand Centre, Alberta. The project known as the "ABC Cold Lake Pilot" involves three participants, AOSTRA (Alberta Oil Sands Technology and Research Authority), BVI (Bow Valley Industries Ltd.), and CLHO. The pilot project is located on a BVI / CLHO farm-in from Gulf Canada Resources (Heavy Oil Lease 84) and covers approximately 5,000 hectares (12,500 acres) bordering on the north-west shore of Cold Lake. The location is 16 km east of Esso's Marie Lake project. Total expenditures in Phase A will be approximately $15,000,000 over the next two years. Capital costs for 1984 will be $7,000,000, with the remaining funds being operating expenses for the next one and a half years. All costs will be shared 75 per cent by AOSTRA and 25 per cent by BVI. To date, seven directional wells have been drilled in a hexagonal configuration from a central pad. Steam injection and well satellite facilities were installed during late August and September. Steam and carbon dioxide injection was scheduled to commence in late September. Over 85 per cent of capital costs represent Canadian material and tabor, the majority of which will be expended in Alberta. Drilling, equipment, fabrication and installation have been awarded to local contractors in the Cold Lake area. A field office at the pilot site has been opened and will employ 12 full time staff and contract personnel to conduct the project, the majority of whom are presently area residents. Bitumen produced by the project will be trucked to L1oydminister. Phase A of the project will evaluate a new technology, which relies upon the use of superheated steam, carbon dioxide and other additives to recover bitumen from the Clearwater formation at a depth of about 1,400 feet (430 m).