Web Version 1 - Surmont Energy

Surmont Energy Ltd. and the Wildwood Project
Surmont Energy Ltd. (Surmont) is a privately owned, junior oil sands company founded in 2011 and headquartered
in Calgary, Alberta. Surmont owns interests in oil sands leases in northern Alberta, located approximately 70 km
south of Fort McMurray and close to major regional highways and infrastructure.
Surmont’s leases consist of 19 contiguous sections of land (approximately 12,000 acres) and are located in sections
19, 20-82-8W4 and sections 24, 25 and 36-82-9W4 (shown in yellow on the map on the next page). We hold an 80%
interest in the 19 sections and our partner company, Bounty Developments Ltd., holds the other 20%.
Surmont’s Wildwood Project will recover the bitumen oil sand resources from these leases by drilling wells and
injecting steam into those wells, as the bitumen resources are too deep to be mined from the surface. This process is
called Steam-Assisted Gravity Drainage (SAGD), and is the most commonly used underground oil sands technology
in the region. SAGD has much less surface impact than surface mining.
Surmont’s Corporate Philosophy
We are committed to developing resources in a safe,
sustainable and environmentally responsible manner,
and dedicated to consulting with local communities,
Aboriginal groups and other stakeholders that are
potentially affected by our activities. Understanding the
concerns of the local community helps us to identify
and address any issues or concerns related to our
development.
Our core values, which serve as the foundation of all
areas of our activities, are honesty, respect, teamwork
and a solid commitment to excellence.
Activity completed to date
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During our 2011/2012 winter exploration program, Surmont completed 13 km of 3-D seismic and a 10-well corehole
drilling program. The results of the work done to date have identified sufficient bitumen to justify proceeding with an
oil sands project.
Surmont’s Wildwood SAGD Project
Surmont is proposing to initially construct and operate an approximately 12,000 barrel per day (bpd) project, including
a central processing facility, 3-5 well pads with approximately 6-8 well pairs per pad, and several water source wells,
along with associated infrastructure such as roads and pipelines.
Surmont plans to use existing infrastructure and previously disturbed areas, such as roads and utility corridors,
wherever practical for the Wildwood Project. Both steam and power will be generated on site, using natural gas fuel.
Water will be used for operations, including steam generation. Water conservation is an important part of Surmont’s
commitment to developing the resource responsibly.
The proposed Wildwood Project will develop about 5 of the 19 sections of Surmont’s leases.
Oil Sands Technology Details
Steam-Assisted Gravity Drainage, or SAGD, is a process
used to remove bitumen from in situ oil sands deposits
that are too deep to mine from the surface. At Surmont’s
Wildwood Project, these oil sands are at a depth of
about 460 metres.
The SAGD process involves drilling a horizontal well
through the underground oil sands layer, with this well
located just above the bottom of the oil sands layer
(called a “producer well”). A horizontal “injector well” is
drilled a few metres above the producer well. The two
wells together are generally referred to as a SAGD “well
pair”. The process works by injecting steam into the
injector well, so that the bitumen around the well pair is
heated enough to flow by gravity into the producer well
below. The fluid in the producer well is transferred to a
surface processing facility, where the bitumen, steam
condensate, produced water and gases are separated
and appropriately treated.
Regulatory Process
Surmont is applying to Alberta Environment and Sustainable Resource Development (AESRD) and the Energy
Resources Conservation Board (ERCB) to construct, operate and reclaim the proposed Wildwood Project. The project
will require approvals under the Environmental Protection and Enhancement Act and the Oil Sands Conservation Act.
Schedule
Surmont has commenced environmental field studies that will be used to prepare the Project Application and plans to
submit the application in the fall of 2012.
The actual timing of the proposed Wildwood Project will depend on the outcome and schedule of the regulatory
process and requirements arising from that process. Surmont is currently proposing that first steam injection will occur
early 2015 and bitumen production a few months later.
Key Environmental Details
We are committed to being a good neighbour in the communities where we operate. We believe it is our duty to
operate in ways that are safe and environmentally responsible. This includes minimizing surface disturbance by using
existing infrastructure and previously disturbed areas wherever practical. The Project will include produced water
recycling facilities to minimize the amount of water consumed.
As part of our application we will be conducting studies to assess several environmental aspects, including:
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Air quality
Fisheries and aquatic resources
Noise
Reclamation and mitigation
Groundwater
Surface water
Historical resources
• Soils and terrain
• Vegetation and wetlands
• Wildlife
Surmont’s Consultation Process/Commitments
Surmont is committed to consulting with potentially affected Aboriginal groups and other public stakeholders near
our Project. Throughout the consultation process, we will strive to identify and address issues and concerns about
our operations.
Surmont is committed to considering both public stakeholders and Aboriginal groups when planning our Wildwood
Project. Our program is based upon mutual respect and will recognize the value of concerns and the input provided.
Economic Benefits and Opportunities
The Wildwood Project will add to the local, Alberta, and
wider economy in many ways during project construction
and operations, by providing employment and through
taxes and royalties. A process will be developed to ensure
that opportunities created by this project are made
available to local communities and Aboriginal groups.
Contact Information
Surmont Energy Ltd.
Wildwood Project
c/o Calliou Group
916B – 16th Ave NW
Calgary, Alberta
T2M 0K3
For more information please contact:
Gordon D. Holden
Cell: 403.807.2397
[email protected]
or
Kathrin Janssen
Cell: 403.796.3089
[email protected]