Athabasca Oil Corporation is pleased to announce that the Lieutenant Governor in Council has authorized the Energy Resources Conservation Board to grant Approval No. 11888 for the development of its 12,000 barrels per day (bbl/d) Hangingstone Project 1.
This regulatory approval represents a significant milestone in the development of Athabasca’s substantial oil sands reserve base. In early November 2012, the Hangingstone Project 1 will be presented, for sanctioning, to the Company’s Board of Directors.
Front-end engineering and design (FEED), for the Hangingstone Project 1, has been completed, and the procurement of long-lead equipment is well underway. The Company anticipates project start-up by the second half of 2014.
Located less than 20 kilometres southwest of Fort McMurray, the Hangingstone Project 1 will employ steam assisted gravity drainage (SAGD) technology. The Hangingstone project area is comprised of 213 sections of land which contain 0.1 billion barrels of Probable Reserves and 0.9 billion barrels of Contingent Resource (Best Estimate) which is based upon third party estimates, effective April 30, 2012.
Hangingstone Project 1 will be followed by additional SAGD projects, bringing the area’s potential production to greater than 80,000 bbl/d. In 2013, the Company plans to file regulatory applications for development of the Hangingstone Projects 2 and 3.