FORT MCMURRAY, ALTA. - CANWEST PETROLEUM CORP. of Calgary has purchased the 9,320-ha Eagle Nest oil sands prospect for a cash price of US$727,187. In its Crude Bitumen Resource Atlas of May 1996, the ALBERTA ENERGY AND UTILITIES BOARD (EUB) estimated an initial in-place resource for the prospect of 3.4 billion barrels of crude bitumen.
CanWest owns 100% interest in the Eagle Nest prospect through a wholly owned subsidiary, subject to a Cdn$0.09/bbl royalty and other cash payments. Eagle Nest is 110 kilometres west of the company's Firebag East oil sands project, within the Athabasca oil sands trend, and is usually accessible by winter road.
The company plans to drill approximately 12 exploratory holes this winter in an effort to confirm, in part, the EUB resource estimate, at an estimated cost of US$2 million.
Seven previous exploration wells drilled on the Eagle Nest prospect that indicate, on a preliminary basis, an average net bitumen pay of 14 metres and an average bitumen content of 11% by weight, with a porosity of 33%, which tends to support the EUB estimates. The bitumen resource is within the McMurray formation, at an approximate depth of 550 metres.
If exploration locates sufficient resources present, Eagle Nest may be amenable to recovery using steam-assisted gravity drainage technology, used to recover bitumen from within the subsurface where it is too deep to mine.
For more information please visit www.canwestpetroleum.com.