Our Telephone Lake project (formerly called Borealis), is located in northern Alberta about 90 kilometres northeast of Fort McMurray, and is one of our emerging oil sands projects. The project is expected to have an initial production capacity of 90,000 barrels per day which is anticipated to be developed in two phases of 45,000 barrels per day each.
Our Telephone Lake project is unique because it has a layer of groundwater above the oil that’s not suitable for human consumption without treatment. We completed a pilot project to remove the layer of water sitting on top of the oil sands deposit in 2013 through a process called dewatering. Dewatering is not essential to the development of Telephone Lake, however, we believe it will make the oil recovery process more efficient and reduce our impact on the environment.
The Alberta Energy Regulator approved our Telephone Lake project in November 2014. Telephone Lake is expected to have a 40-year life with a total production capacity of 300,000 barrels per day, developed in multiple phases. We expect to make a decision on the timing of development in 2015.
Formal consultation on the project is ongoing with our stakeholders, and various meetings and open houses will be scheduled in the surrounding community to answer questions about Telephone Lake.