Baytex acquires $120M oil sands leases for SAGD development
Anticipates produces 5,000 bbl/d with initial production in 2014.
Oil & Gas
steam assisted gravity drainage
CALGARY — Baytex Energy Corp. has entered into an agreement to acquire approximately 46 sections of undeveloped oil sands leases in the Cold Lake area of northeast Alberta for $120 million.
The Calgary-based oil and gas company said the leases are near its core heavy oil assets at Cold Lake and offer potential for both thermal and cold development.
Regulatory approval has been received for the construction and operation of a two-stage bitumen recovery operation using steam-assisted gravity drainage (SAGD). Baytex said it will install a pilot SAGD project in 2013.
Construction of a commercial 5,000 bbl/d would follow in 2014 with initial production in 2016.
In addition to the currently approved SAGD project, Baytex has identified additional areas that are prospective for thermal development.
The acquisition adds to Baytex’s asset portfolio, which currently includes thermal recovery projects at Seal in the Peace River Oil Sands and at Kerrobert in southwest Saskatchewan.