CALGARY, ALBERTA, Oct. 27, 2009 (Marketwire) -- Petrobank Energy and Resources Ltd. ("Petrobank") (TSX:PBG) is pleased to announce the commissioning and commencement of air injection at our Kerrobert THAI(TM) heavy oil project. This project applies the THAI(TM) technology in a conventional heavy oil reservoir at Kerrobert, Saskatchewan. Initially a two-well project, Kerrobert is a 50/50 joint venture with Baytex Energy Trust.
Kerrobert heralds a new era for fast track heavy oil projects in Canada.
- July 9, 2009: Regulatory approval received only 54 working days after filing the application.
- September 7, 2009: Drilling and completion operations completed.
- September 8, 2009: Plant construction initiated and completed in six weeks.
- September 12, 2009: The pre-ignition heating cycle ("PIHC") commenced (in the vertical wells only) and we have now started air injection.
The PIHC performed as expected, allowing us to achieve the necessary injectivity into the reservoir zone. The horizontal wells have temporary downhole pumps which were turned on at low rates to achieve a slight drawdown pressure across the horizontal well prior to air injection. Air injection has been initiated at a rate less than 10% of designed volumes to establish the in-situ combustion zone. Currently, we expect to begin producing through the plant in the next twenty-four hours. Once combustion gas is consistently produced from the horizontal well, we will cease pumping and ramp up air injection to allow the wells to flow. We will then increase air injection rates and oil production volumes are expected to increase concurrently.
This project will highlight the applicability of the THAI(TM) technology in Saskatchewan's conventional heavy oil resource base. We believe that a significant portion of the Province's estimated 20 billion barrels of unrecovered conventional heavy oil resources can be commercialized using THAI(TM). In addition, Saskatchewan is actively encouraging oil and gas development and the application of advanced technologies through an efficient, accountability-based regulatory process and competitive royalty regime.
Petrobank Energy and Resources Ltd. is a Calgary-based oil and natural gas exploration and production company with operations in western Canada and Latin America. The Company operates high-impact projects through three business units and a technology subsidiary. The Canadian Business Unit, operated by Petrobank's 64% owned TSX-listed subsidiary, PetroBakken Energy Ltd. (TSX:PBN), is a premier light oil production company combining high growth, long-life Bakken reserves and production with legacy conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. The Latin American Business Unit, operated by Petrobank's 67% owned TSX-listed subsidiary, Petrominerales Ltd.
