Our Grand Rapids pilot project is located in the Greater Pelican Region, about 300 kilometres north of Edmonton, Alberta. The project is 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 a second well pair 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 March 2014. Grand Rapids is estimated to have a 40-year life with production capacity of 180,000 barrels per day, developed in multiple phases. Given the current oil price environment this project has been deferred.