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.
AOS has oil sands leases at four properties in the Athabasca oil sands region of northeast Alberta. Please scroll over any asset on the map for a link to the asset’s detailed write-up. All four areas would most likely be developed using SAGD.
Clearwater is the Company’s most advanced project, with a regulatory application having been filed in 2010. The Company’s other three prospects are in the exploration stage.
MacKay River Prospect
Grand Rapids Prospect
Algar Lake Prospect
Clearwater is an innovative, two-phase SAGD bitumen project. The first phase is situated adjoining the Fort McMurray Regional Airport in the Athabasca oil sands region of northeast Alberta. The Clearwater property covers 32 sections (20,480 hectares) and comprises the McMurray Formation. AOS holds 100 percent working interest and is the operator.
Clearwater lies close to existing road infrastructure and provides mostly year-round access. The resource base has been extensively delineated. AOS filed the formal regulatory application for its Phase I project in January 2010 followed by an application update in December 2010.