Paramount enters sands with 2 projects

Paramount Resources has tossed its name in the oil sands ring by unveiling plans to develop two projects, including a wholly owned operation and a joint venture with North American Oil Sands Corp., both of them designed to produce 10,000 barrels per day.

The company expects to drill 40 evaluation wells and acquire four square miles of 3-D seismic in the Surmont area of northeastern Alberta this year and next, following 10 evaluation wells over the past two years.

It is also working on front-end engineering designs for both ventures.

The project with North American Oil Sands involves 150 evaluation wells this year, following 24 over the past two years, and 157 square miles of 3-D and 2-D seismic.

The Surmont site could generate 30,000 bpd of production at its peak and the joint venture with North American Oil Sands is targeted at 80,000 bpd.

Independent evaluations estimate Paramount’s leases contain 3.58 billion barrels of bitumen in place — 1.07 billion on the Surmont lease and 2.52 billion at the joint venture.

Total recoverable resources are thought to range from 1.63 billion to 523 million barrels, with 923 million thought to be most likely.

The net present value of Paramount’s recoverable bitumen is estimated at C$1.18 billion (most probable), C$178 billion (high) and C$553 million (low).

—Gary Park