CALGARY, Sept. 14, 2018 /CNW/ - Enhance Energy Inc. ("Enhance" or the "Company") is pleased to announce the completion of all required arrangements related to the previously announced project development and coordination agreement and long-term service agreement for the construction and operation of the Alberta Carbon Trunk Line ("ACTL") with Wolf Carbon Solutions Inc.
Under the terms of the agreements, Wolf will construct, own and operate the CO2 capture and pipeline transportation assets. Enhance will continue to be the owner and operator of the CO2 utilization and sequestration portion of the ACTL project through its enhanced oil recovery ("EOR") operations. Construction activities related to the ACTL project are expected to commence in the next 60 days with first transportation and storage of CO2 anticipated by the end of 2019.
Financial support was provided to Enhance by ATB Financial through associated debt facilities. Dentons Canada LLP acted as legal advisors to Enhance for the transaction.
About the ACTL
The ACTL project is a carbon capture utilization and storage project that in its first phase will capture CO2 from two sources in Alberta's Industrial Heartland and transport the CO2 to existing mature oil fields located near Clive, Alberta, that will benefit from increased light oil recovery as CO2 is permanently stored in the reservoir. At full capacity, the ACTL will be the largest project for utilizing and storing man made CO2 in the world, and the equivalent of removing every car from Alberta's roads. The ACTL demonstrates how Alberta can be a leader in emissions mitigation while at the same time supporting and encouraging vital new industries ranging from upgrading and refining through to Enhanced Oil Recovery.
About Enhance Energy
Enhance is a private oil and gas development company specializing in EOR and focused on using CO2 for miscible flooding in the Clive field in central Alberta. The Enhance leadership team has extensive experience in the oil and gas industry and the planning and implementation of similar, large-scale CO2 EOR projects once traditional primary and secondary recovery techniques have been exhausted. Through its CO2 EOR scheme, the Company is able to safely capture and permanently sequester CO2 while increasing production and reserves recovery resulting in a new and significant low carbon source of fossil fuel production.
SOURCE Enhance Energy Inc.
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