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Long Lake Project.
February 4, 2005
PROJECT UPDATE: STEADY PROGRESS
Construction continues to move ahead on schedule at the Long Lake site through the
coldest months of the year, highlighted by piling work for both the SAGD and upgrader
portions of the project as well as erection of an administration building that will house
approximately 120 operations and 30 maintenance personnel.
Meanwhile, more than 20 horizontal well pairs have been drilled and a winter
exploration program, including corehole drilling and 3D seismic has begun, on nearby
properties (Leismer, Kinosis, and Cottonwood) shared by the Long Lake joint-venture
partners.
On the Project site, earthwork and the installation of deep underground pipes and
facilities has been completed on time and on budget. During 2004, 4 million cubic metres
of earth and gravel were moved to prepare the site for construction. Fabrication of the
major storage tanks, installation of piles and construction of the plant administration
building have also commenced on schedule. Delivery of the first module to site is planned
for the second quarter of 2005.
Detailed construction planning is continuing, with a planned peak onsite labour force
of 2,000 in 2006.
Drilling of the commercial SAGD (steam assisted gravity drainage) well pairs is well
underway with three rigs in operation. By the end of November, 18 horizontal wells were
drilled. Drilling operations are proceeding ahead of schedule and below budget with
reservoir results on track with expectations. Based on these initial results it is
expected the drilling of 130 horizontal wells (65 well pairs) will now be completed
prior to the end of 2005 compared to the first quarter of 2006.