|

A Unique SAGD Opportunity

AOS represents a unique opportunity in the Alberta oil sands. Our growth model is based on smaller-sized underground or in situ projects using solvent co-injection steam-assisted gravity drainage (SLP-SAGD).

The Company’s development model stresses safe operations, a small environmental footprint and enhanced process efficiency through a reduced steam-to-oil ratio (SOR). This will be achieved through a range of design and technology features, including low-pressure steam injection, diluent co-injection, placement of basement producing wells and other technology enhancements, capturing the full range of economic and environmental benefits created by lowering the SOR.

AOS’s primary focus is the Company’s Clearwater Project. Clearwater is in an advanced stage of development, with extensive delineation and other technical work completed. The Clearwater project design is based on established SAGD and related technologies, with Phase I having target production of approximately 4,350 barrels per day (bpd).

This project scale offers major growth leverage to a company of AOS’s size, while remaining manageable from a capital and operational standpoint and mitigating technical risks. AOS is actively engaged with area stakeholders and has incorporated comprehensive safety and environmental protection features in the Clearwater project design. AOS is operated by an experienced and skilled management team, supported by industry-leading technical consulting companies.