Value Creation to drill 50-60 wells on oil sands leases

Don Whiteley

Petroleum News contributing writer

Calgary-based Value Creation Inc. said June 17 it will conduct a 50 to 60 well drilling program next winter on 16 oil sands leases covering nearly 72,000 hectares in the Athabasca oil sands area.

The private company, which is developing a proprietary bitumen upgrader, said in a press release that the drilling is the initial phase of a $30 million to $50 million evaluation program to be conducted on its properties.

“It is consistent with our long-term strategy to develop our oil sands resources using our own proprietary technologies,” said Dr. Columba Yeung, founder and chairman of Value Creation.

The 2004-05 program will focus on two leases southwest of Fort McMurray, and one lease northwest of Fort McMurray.

Value Creation estimates that crude bitumen in place totals 26 billion barrels. Some areas may be suitable for in situ operations such as steam assisted gravity drainage.

Value Creation subsidiary BA Energy Inc. has submitted an application to the Alberta Energy and Utilities Board for approval of its 226,000 barrel per day Heartland upgrader planned for Strathcona Country. Subject to regulatory approval, the first phase of the Heartland upgrader could be completed in late 2006.