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CALGARY, June 28 /CNW/ - Value Creation Inc. ("VCI"), part of the Value Creation Group, and its wholly owned subsidiary BA Energy Inc. ("BAE") filed an application with the Energy Resources Conservation Board ("ERCB") to build a 1,000 bpd Steam Assisted Gravity Drainage ("SAGD") integrated with Upgrading Pilot Project on its TriStar leases in the Athabasca oil sands area (the "Project"). The Project is located approximately 14 km south of Fort McMurray. The TriStar leases contain over 2 billion barrels of contingent and prospective recoverable bitumen that can support approximately 200,000 b/d of production for decades.
The Project will establish the high reservoir qualities of the TriStar leases and affirm the significant advantages of the integration of SAGD with VCI proprietary upgrading technologies which can directly upgrade SAGD wellhead slurry of bitumen emulsion, totally unique for upgrading technologies. Such combination is expected to significantly simplify process complexity, achieving very significant competitive advantages in capital and operating costs, as well as reducing environmental footprint and emissions.
This Project is key to a special business initiative with a series of projects of increasing sizes, designed for expeditious execution and prudent risk and financial management. "We fondly call this initiative Value Creation In Motion ("VcIM"), our determined drive to define our destiny," said Dr. Columba Yeung, Chairman and Chief Executive Officer of Value Creation Group.
VcIM is one of three parallel business dimensions of VCI, the other two being:
- Partnership with an International Super Major in the development of
the Terre de Grace oil sand leases (a contiguous block with vast
bitumen resources), which was announced on March 15, 2010. A 10,000
bpd semi-commercial project has already received regulatory
- Value Chain Enhancement to provide upgrading and product value
optimization for VCI, its partners and clients. VCI, via its
subsidiary BAE, has regulatory approvals for a 260,000 bpd Merchant
Upgrader in the Heartland Industrial Area, a pivotal logistic hub for
oil movement from Alberta to North America and the Pacific Rim in the
Note to editors
- Value Creation Inc. is a private Canadian company focused on the
development of its large oil sands resource holdings to become a
full-value-chain oil sands enterprise, leveraging synergistic
applications of its proprietary technologies in integrated resource
- BA Energy Inc., a wholly owned subsidiary of VCI, owns a large block
of prime industrial land (over a thousand acres) in the oil hub of
Heartland ( NE of Edmonton), with major heavy oil pipelines from all
3 major oil sands regions, and crude pipelines to U.S. markets.
- SAGD is a thermal in situ recovery process using pairs of horizontal
wells. A horizontal production well is located near the bottom of the
reservoir and steam is injected into a second horizontal well placed
above it, heating the bitumen and enabling it to flow. The bitumen
and condensed steam gravity drain into the lower horizontal well and
are produced through the wellbore to the surface.
- VCI upgrading technology comprises two processes. The first process
Accelerated Decontamination ("ADC(TM)") takes hot bitumen emulsion
and the produced water directly from the SAGD wells and produces
clean decontaminated oil ("DCO"), premium heavy oil with a negligible
amount of asphaltenes. DCO can be transported with little or no
diluent. The extracted asphaltenes can be sold as solid fuel or used
as a fuel for steam generation. The water produced through this
process contains minimal oil and requires nominal de-oiling prior to
water treatment and steam generation.
- The second process, called Ultra Selective Pyrolysis upgrading
("USP(TM)"), can produce either synthetic crude oil or diluent by
cracking the high boiling point residue in the DCO. The USP(TM) also
produces synthetic gas that can be used for steam generation. The
coke and gypsum by-products can be used for commercial purposes.
CAUTION ON FORWARD-LOOKING STATEMENT
This communication is based on information available when the materials were prepared and is provided as a matter of convenience only. VCI makes no warranty or representation, express, implied, statutory or otherwise, as to the accuracy or completeness of the information contained in this communication. VCI disclaims liability for any reliance upon any information or representation contained in this communication, for any omissions from this memo, and for any written or oral communications made by VCI or its representatives in connection with this communication. This communication does not necessarily contain all the information that a recipient may require or desire. Any reliance or use of such information is done at the recipient's sole risk. It is understood that only those representations and warranties which may be contained in a definitive agreement, if and when executed, shall have any legal effect. This communication is not and under no circumstances is to be construed as, an advertisement or offer to sell any securities of VCI. Certain statements contained in this communication are prospective in nature and constitute forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors that could cause VCI's actual results, performance or achievement to differ materially from those expressed in, or implied by, the forward-looking statements. Accordingly, no assurance can be given that any of the forward-looking statements will transpire or occur, or if any of them do so, what benefits VCI will derive therefrom. VCI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE VALUE CREATION INC.
For further information: For further information: 403.539.4500