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Surmont Energy Ltd Receives Government Approval Of Application For Its 12,000 BOPD Wildwood Oilsands Project
September 15, 2016
CALGARY, ALBERTA — (September 15, 2016) – Calgary-based Surmont Energy Ltd. (“Surmont”, “the Company”) announces that the Lieutenant Governor in Council of the Province of Alberta, Canada, has issued an Order dated September 15, 2016, authorizing the Alberta Energy Regulator (“AER”) to issue approval of the project scheme application for the Company’s 100%-owned 12,000 barrel per day (“b/d”) Wildwood oil sands project. The Order may be viewed on the Queen’s Printer website at http://www.qp.alberta.ca/507.cfm.
THE WILDWOOD OIL SANDS PROJECT The Company’s Wildwood oil sands project location is about 65 kilometres south of Ft. McMurray, Alberta, immediately west of ConocoPhillips Canada’s successful Surmont oil sands project. The Wildwood Project is to utilize the proven steam-assisted gravity drainage (“SAGD”) method to recover bitumen, planned currently with 800-metre long horizontal well pairs drilled at depths of around 485 metres. SAGD has been effectively applied at the adjacent ConocoPhillips Surmont oil sands project and allows greatly reduced surface impacts compared to oil sands mining projects. Wildwood’s design incorporates comprehensive measures to minimize environmental impacts, including a low surface footprint, no surface water use, recycling up to 97% of water produced by the bitumen extraction process, utilization of natural gas to fuel steam generation and electricity cogeneration, and progressive surface reclamation throughout the life of the project. The recently received approvals are valid for production of up to 12,000 b/d of bitumen from a northwest portion of Surmont’s Wildwood leases. The Company assesses the Wildwood leases to be capable of future expansions to total production of 30,000 b/d. Future expansions would require additional regulatory approvals.
WILDWOOD OIL SANDS PROJECT APPLICATION HISTORY Surmont submitted its comprehensive Wildwood project applications to the AER in early October 2012, for approvals under the Oil Sands Conservation Act (“OSCA”), and to the Government of Alberta Department of Environment and Sustainable Resource Development for approvals under the Environmental Protection and Enhancement Act (“EPEA”). During the review process, the AER became the regulatory authority for both OSCA and EPEA approvals for this type of project. As part the regulatory review process, Surmont conducted extensive consultation with local stakeholders, including indigenous groups, and plans to continue such consultations with the objective of growing constructive long-term relationships.
NEXT STEPS FOR THE WILDWOOD OIL SANDS PROJECT Receiving the overall scheme approval for the Wildwood Project is an important step in the Company being able to move the Wildwood project toward a positive final investment decision. Significantly declining project costs and the Government of Alberta’s Oil Sands Royalty Regime are positive elements for oil sands projects. As well, oil sands production technologies have evolved rapidly over the period of the Wildwood project’s application review process. Surmont will be incorporating improvements into its Wildwood project plans to confirm the project’s economic attractiveness at or below current oil prices. This work also is intended to optimize designs toward smaller project phases having greatly reduced capital intensity, and to limit greenhouse gas emissions.
ABOUT SURMONT ENERGY LTD. Surmont Energy Ltd. was founded in 2011 and is headquartered in Calgary, Alberta, Canada. The Company is privately held, mainly by Alberta and other Canadian shareholders.
CAUTIONARY STATEMENTS This information release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as “schedule”, “plan”, “expect”, “estimate”, “forecast”, “intend”, “believe”, “anticipate”, “proposed”, “prospective”, “projects” and other similar words, or statements that certain events or conditions “may”, “might”, “will”, “would”, or “could” occur. Forward-looking statements are based on Surmont’s experience and current beliefs as well as assumptions made by, and information currently available to, Surmont, and are subject to a variety of risks and uncertainties including, but not limited to, those associated with resource definition, unanticipated costs and expenses, regulatory approvals, fluctuating oil and gas prices, and the ability to access sufficient capital under suitable conditions to finance future acquisitions and development. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this information release are not exhaustive and readers are not to place undue reliance on forward-looking statements. Surmont expressly disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this message, except as required under applicable securities legislation. All forward-looking statements are expressly qualified by these cautionary statements.
FURTHER INFORMATION Mark R. Smith, Director and Chief Executive Officer – email@example.com Gordon D. Holden, Director and Chief Operating Officer – firstname.lastname@example.org
Surmont Energy Executive Summary September 2016
Global Chinese Financial Forum
December, 2015 – Shenzhen, China
Video courtesy of NAI Interactive Ltd. www.nai500.com
News & Press Releases
March 17, 2016
Surmont Energy continues to push forward with its 12,000 barrel per day Phase 1 Wildwood SAGD project, despite the significant challenges facing the global energy industry.
In April 2016, it will have been three and one half years since we submitted our applications to the Alberta Energy Regulator (“AER”) for Wildwood Phase 1 scheme and environmental approvals. While Wildwood was technically approved back in December, 2014, major organizational changes within the AER and a new provincial government coming up to speed have contributed to substantial delays in receiving approvals which has negatively impacted Surmont Energy and our industry generally.
We have been in regular contact with the AER and the Alberta government and I am scheduled to be meeting with the Alberta Energy Minister in May. I believe that we will have these approvals by this summer. Finally having these approvals will be an extremely important asset to bring to our project financing and other key corporate discussions.
In December 2015, Gordon Holden and I continued our preparatory financing work with a week- long trip to Hong Kong and Shenzhen, China. Further, in January 2016, I participated in an Alberta Government trade mission to Shanghai, Tokyo, Hong Kong, and Singapore. These trips have opened up a number of financing possibilities that we can work to progress once we have our project approvals in hand. As well, we are seeing other opportunities come to us from the solid relationship we have developed with the Alberta Government’s commercial office in the Far East.
We have been working with engineering, manufacturing, and other suppliers to reduce our project’s up-front capital and ongoing operating costs. As part of this work, we are also continuing to assess a variety of new technologies to help improve project economics and environmental impacts, but there are few easy answers and so we continue our work with innovators in these areas.
We have also been actively collaborating with the In Situ Oil Sands Alliance (IOSA) on their work related to the Alberta Government’s new Climate Leadership Plan. This coordinated effort allows us to hear the views of other independent oil sands companies, and gives us the opportunity to have input into collective messaging to Government as specific legislation and regulations are being formulated.
With all of these events and the related uncertainties, your company’s executive team is always keeping a clear focus on the fact that Wildwood is an excellent oil sands project; a right-size project, in the right location, that can be developed right now (once financed). That now is the right time comes as a surprise to many outside our industry; however, current low oil prices are providing powerful incentives to reduce development and construction costs and have boosted necessary efforts to find innovative ways of developing Alberta’s large oil sands resources in an economic and environmentally responsible way.
Surmont’s operations over the last year have been funded largely through loans from management and our largest shareholder, together with non-cash compensation in the form of shares or share options. As we have no debt other than that owed to management and Surmont’s largest shareholder, and as we have slashed costs, we are maintaining Surmont’s financial health through this difficult time so that we will be ready to proceed with the development of Phase 1 of our Wildwood Project upon obtaining the required project financing.
I look forward to our next update, when we have received our regulatory scheme approval, hopefully later this spring. We welcome any of your comments and suggestions.
Mark R. Smith CEO
Surmont says it can do oil sands more cheaply
Calgary-based private company Surmont Energy Ltd., in conjunction with its operating partner Bounty Developments Ltd., has completed field acquisition of a $3 million 13 square kilometer 3-D seismic program southwest of Ft. McMurray, Alberta.
The seismic program’s results are being used to select locations for approximately 12 oilsands coreholes that are planned to be drilled before March 15, 2012 at a cost of approximately $6 million. The company plans to utilize the results of this year’s seismic and drilling program, together with the results of previous years’ seismic and coreholes, to make regulatory applications for a 10,000-12,000 barrel per day steam-assisted-gravity-drainage (SAGD) project.
SURMONT ENERGY RECEIVING INITIAL RESULTS OF ALBERTA OILSANDS COREHOLE DRILLING PROGRAM
Calgary-based private company Surmont Energy Ltd. has begun to receive initial corehole results of its 2011/2012 oilsands drilling program. The drilling is being carried out in conjunction with Surmont’s operating partner Bounty Developments Ltd., in the northwestern portion of the companies’ 19 contiguous sections of oilsands leases located about 70 km southwest of Ft. McMurray, Alberta.
Preliminary core analyses of the first two wells suggest net oilsands pay thickness, oil saturations, and reservoir quality consistent with Surmont’s expectations for a successful steam-assisted-gravity-drainage (SAGD) oilsands production project. Full core analyses for these first two wells are being expedited and are expected to be received shortly for calibrating electric logs interpretation for the balance of the program. Core analyses for the remaining wells in the program will likely be received after the end of the drilling season. Core analyses are being conducted by Loring Tarcore Labs Ltd. Such analyses, together with the $3 million 3-D seismic program acquired earlier this season, will be used by Surmont to commission an updated resources report by an independent evaluation company.
The $6 million corehole drilling program is scoped to include approximately 12 coreholes, and scheduled to be completed by mid-March 2012 using three rigs. Completion of the program will result in Surmont earning an 80% interest in the 19 sections of lands (9,728 acres net to Surmont).
Surmont and Bounty plan to use the results of this program, together with data from previous years, to make regulatory applications for the first phase of a steam-assisted-gravity-drainage (SAGD) oilsands production project in one portion of the land block. The companies are also planning to continue exploration activities on the balance of the lands for development of additional project phases.
SURMONT ENERGY EARNS 80% WORKING INTEREST IN 12,000 ACRES OF OILSAND LEASES CONTAINING A BEST ESTIMATE/DISCOVERED & UNDISCOVERED BITUMEN IN PLACE OF 1.49 BILLION BARRELS
Calgary-based private company Surmont Energy Ltd. announced today that it has completed its winter 2011/2012 oilsands exploration program at the company’s oilsands leases located about 70 kilometres southwest of Ft. McMurray, Alberta.
This winter’s program consisted of a $3 million, 13 square kilometre 3-D seismic shoot, followed by an approximately $5.5 million program for drilling 10 oilsands coreholes on seismically defined locations. A cap rock core was also acquired as part of the program. The work was carried out with Surmont’s operating partner Bounty Developments Ltd.
Surmont has now earned an 80% working interest in the 19 (12,000 Acres) contiguous sections of oilsands lands comprising the leases, with Bounty holding the remaining 20%.
Surmont will use the results of this winter’s seismic and drilling program, together with corehole and seismic information from previous years, to commission an updated resources report by an independent evaluation company. Surmont has also commenced work intended to lead to submission later this year of regulatory applications for the first phase of a SAGD oilsands project, with such first phase currently anticipated to be designed to produce in the range of 10,000 to 12,000 bopd.
Surmont and Bounty will also be assessing plans for exploration of the rest of the lands in upcoming seasons, with the objective of developing additional project phases to increase overall reserves and peak production rates to a multiple of Phase 1 values.
SURMONT ENERGY SELECTS SAGD ENGINEERING FIRM
Calgary-based private company Surmont Energy Ltd. (“Surmont”) announces that it has engaged SCOVAN Engineering Inc., a Calgary based engineering, procurement, and construction management company, to provide the engineering design that is intended to lead to submission later this year of regulatory applications for its 10,000 to 12,000 bopd Phase 1 SAGD oilsands project. This project is the first of a multi-phased program planned by Surmont.
Surmont and Bounty Developments Ltd. are working together to develop an exploration plan for the rest of the lands in upcoming seasons, with the objective of developing additional project phases to increase overall reserves and peak production rates to a multiple of Phase 1 values.
SURMONT ENERGY ANNOUNCES RESULTS OF INDEPENDENT RESOURCES EVALUATION OF ITS OIL SANDS LEASES NEAR FT. MCMURRAY, ALBERTA
Calgary-based private company Surmont Energy Ltd. (“Surmont”, or the “Company”) is pleased to announce that independent qualified reserves evaluation firm GLJ Petroleum Consultants Ltd. (“GLJ”) has completed its evaluation of Surmont’s Wildwood Project oil sands leases located near Ft. McMurray, Alberta (the “GLJ Report”).
The GLJ Report was prepared in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”), with an effective date of March 31, 2012, and using GLJ’s forecast prices and costs as at that date.
SURMONT ENERGY LTD. ANNOUNCES SUBMISSION OF APPLICATIONS FOR REGULATORY APPROVAL OF THE 12,000 BPD WILDWOOD OIL SANDS PROJECT
Calgary-based private company Surmont Energy Ltd. (“Surmont”, or the “Company”) is pleased to announce that regulatory applications have been submitted to the Alberta Energy Resources Conservation Board and the Government of Alberta’s Department of Environment and Sustainable Resource Development, for approval of the Company’s 12,000 barrel per day (BPD) Wildwood SAGD project.
SURMONT ENERGY ANNOUNCES RESULTS OF INDEPENDENT RESOURCES EVALUATION OF ITS OIL SANDS LEASES NEAR FT. MCMURRAY, ALBERTA AND PROVIDES CORPORATE AND OPERATIONS UPDATES
CALGARY, ALBERTA — (December 7, 2012) – Calgary-based Surmont Energy Ltd. (“Surmont”, or the “Company”) is pleased to announce that independent qualified reserves evaluation firm GLJ Petroleum Consultants Ltd. (“GLJ”) has updated its evaluation of Surmont’s oil sands leases located near Fort McMurray, Alberta (the “GLJ Report”). The updated GLJ Report was initiated as a result of Surmont’s recent submission of regulatory applications for its 12,000 barrel per day (“bbl/d”) Wildwood oil sands project together with the completion of additional engineering.
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Q: Where are Surmont Energy’s Oil Leases and how many sections do you have?
A: Surmont Energy leases are located 65 kilometres south of Fort McMurray. We have a 100% WI (Working Interest) in 19 square miles (50 square kilometres) of contiguous land. Click here for a detailed map of all current Alberta oilsands projects. We are #86 on the map.
Q: How much oil is in place?
A: Following Surmont Energy’s successful 2012 3D seismic and corehole drilling program, GLJ Petroleum Consultants identified in a November 30, 2012 report on Surmont Energy’s reserves and resources prepared in accordance with National Instrument 51-101, the following resource and reserve estimates:
- Best Estimate Bitumen Reserves and Resources (Recoverable) 151 Million Barrels
- High Estimate Bitumen Reserves and Resources (Recoverable) 272 Million Barrels
A: We will be assessing plans for 3D seismic and drilling of the rest of the lands in upcoming seasons with the objective of developing additional project phases to increase overall reserves and peak production rates to a multiple of Phase 1 values.
Q: How much seismic have you done on the property?
A: To date there has been 72.5 km of 2D seismic and 13 square km of 3D seismic. The 3D seismic covers the entire Wilwood Phase 1 project area.
Q: How many total wells have been drilled on the property?
A: 25 wells were previously drilled on the property. Our 2012 Winter program included 10 delineation wells.
In The Media
April , 2012
Surmont Energy’s CEO Mark Smith is profiled in the April, 2012 issue of Alberta Oil Magazine.
To read a PDF of this article, please click here.
Surmont Energy – Accelerates Toward Regulatory Application (Oilsands Review, May, 2012) To read a PDF of this article, please click here.
It would be Wildwood: Surmont Energy further de-risks its SAGD asset by filing its regulatory application, just one year after incorporation (Oilsands Review, December, 2012)
To read a PDF of this article, please Click Here.
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The Surmont Energy Website contains certain statements, estimates and forecasts with respect to future performance and events. This website and these materials are neither an advertisement or an offer to sell or a solicitation of an offer to buy shares of Surmont Energy Ltd. (“Surmont”) or units or participation in any Surmont drilling program.
All statements other than statements of actual historical fact included on this Website, including, but not limited to, statements regarding future performance of events, are forward-looking statements. All such forward-looking statements are based on various underlying assumptions and expectations and are subject to risks and uncertainties which could cause actual events and results to differ materially from those expressed in the forward-looking statements.
As a result, there can be no assurance that the forward-looking statements included on the Surmont Website will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance, results and/or events described in the forward-looking statements on this Website might not occur.
Accordingly, investors should not rely upon forward-looking statements as a prediction of actual results. The Company does not undertake any obligation to update any historical or forward-looking statements, whether as a result of new information, future events or otherwise.
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