Plans for new project filed with regulators

Start-up company North American Oil Sands has set an ultimate goal of producing 220,000 barrels per day of bitumen from its proposed Kai Kos Dehseh project, using steam-injection methods to remove the bitumen.

In a public disclosure document the company said it has filed a regulatory application for a 10,000 bpd demonstration project, which it hopes to complete by late 2009.

The next phase of 70,000 bpd would be completed towards the end of 2011, followed by 140,000 bpd to be built in the 2011-15 period.

North American also plans to build an upgrader near Edmonton and is prepared to offer any excess capacity to other producers.

The privately held company holds 275,200 acres of oil sands leases north of the town of Lac La Biche in the Athabasca oil sands region.

Its major shareholders are Paramount Resources and funds managed by affiliates of ARC Financial and the Ontario Teachers’ Pension Plan Board.

—Gary Park