Chevron tests heavy oil prospects

Chevron Canada has wrapped up the first round of winter drilling at the northeastern Alberta site of its Ells River heavy oil project that it hopes will produce 100,000 barrels per day by 2015.

As part of getting a better fix on the reserves, 66 appraisal wells were drilled to depths of about 1,500 feet.

That will be followed by a technical evaluation of the data and more work on the production options, including a decision on whether to conduct a pilot project.

Ells River involves six leases covering 74,000 acres, with original oil in place estimated at 7.5 billion barrels.The leases were acquired at Alberta government land sales in 2005 and 2006 for C$75 million.

Partners are Chevron Canada with 60 percent, with Shell Canada and Western Oil Sands each holding 20 percent. The same three companies own the Shell-operated Athabasca oil sands project.

—Gary Park