Heavy oil minnow gets pipeline go-ahead

Gary Park

Petroleum News Calgary correspondent

BlackRock Ventures, one of the expanding group of junior companies tapping into northern Alberta’s heavy oil, has Energy and Utilities Board approval for a C$36 million pipeline expected to start shipments by mid-2004.

The 55-mile link to the Rainbow Pipeline system will have capacity for 50,000 barrels per day, with BlackRock holding a 45 percent ownership stake.

The company said the pipeline will result in savings of C$2.50 per barrel in transportation costs from its 52,000-acre Seal lease.

By commissioning a 10,000 bpd battery at Seal this week, it achieved additional savings of about C$3 per barrel.

Total output from Seal is currently more than 8,000 bpd from 28 wells, with another five wells due for connection before year’s end.

BlackRock President John Festival said his company is counting on at least five more years of development on the Seal play.