Deer Creek ready for initial offering

Gary Park

Deer Creek Energy is stepping up the pace of the planned expansion of its Joslyn project in northeastern Alberta.

In late July the oil sands startup announced approval from securities regulators across Canada for its initial public offering on the Toronto Stock Exchange of C$160.55 million and a commitment agreement for a C$65 million credit facility with two Canadian chartered banks.

This comes on the heels of a May approval from the Alberta Energy and Utilities Board for a second-phase expansion at Joslyn from 2,000 barrels per day to 12,000 bpd by mid to late 2007.Deer Creek said the operational plans for phase two are firmly on track as part of a multi-phase development of a lease with in-place reserves of 7.5 billion barrels and a production potential rated at 160,000 bpd.

Three projects, with potential reserves of 1.8 billion barrels, are under active consideration – two steam-assisted gravity drainage projects of 30,000 bpd each and one mining project of 100,000 bpd.

In April, Deer Creek reported the start of its steam-assisted gravity drainage operations after completing a 195-well program on schedule and under budget.