Our Grand Rapids pilot project is located in the Greater Pelican Region, about 300 kilometres north of Edmonton, Alberta. It’s adjacent to our Pelican Lake heavy oil operation and existing facilities.
In December 2010, we drilled our first pilot steam-assisted gravity drainage (SAGD) well pair in the Grand Rapids formation. We’ve since drilled two additional well pairs as part of the pilot to evaluate thermal recovery of this large oil resource. We’ve learned a considerable amount from the pilot well pairs and are pleased with the results.
The Alberta Energy Regulator approved the commercial project in 2014 and the third pilot well pair is expected to be completed and in use by the second quarter of 2015. It’s anticipated that data from these well pairs will be used to help determine our development plan for Grand Rapids. Given the current oil price this project has been deferred.
When the project does proceed, it’s estimated to have a 40-year life with potential production capacity of 180,000 barrels per day, developed in multiple phases.