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TSXV Trading Symbol: SWE
CALGARY, Dec. 19, 2013 /CNW/ – SilverWillow Energy Corporation (“SilverWillow” or the “Corporation”) (TSXV: SWE) has submitted an integrated application with the Alberta Energy Regulator and Alberta Environment and Sustainable Resource Development for approval of the Corporation’s proposed 12,000 barrel per day Steam Assisted Gravity Drainage (“SAGD”) project on its Audet oil sands leases located approximately 75 km northeast of Fort McKay, Alberta. Subject to receipt of all necessary approvals, it is expected that construction on the Audet project will commence in late 2015 with commercial production being achieved in 2017. The project facilities have been designed to allow operations at a steam-oil ratio (“SOR”) of 2.5, with the expected average SOR over the life of the project at 2.0. The project is currently expected to operate for 28 years and produce an estimated 103 million barrels of bitumen.
The estimated capital cost of the project is approximately $550 million which equates to a capital intensity of approximately $46,000 per barrel per day. This estimate includes site access, construction, drilling, commissioning and start-up, as well as other capital and operating costs until first steam is achieved. It excludes capital costs for items that are expected to be provided by third parties such as co-generation facilities, fuel gas supply pipeline, diluent and product pipelines, and operations camp, all of which are anticipated to be captured in operating costs.
About SilverWillow Energy
SilverWillow Energy Corporation is a Calgary, Alberta based pre-production oil sands company with a portfolio of exploration leases in Canada’s Athabasca oil sands. To learn more, please visit www.swenergy.ca.
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Cautionary Statements Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. The forward-looking information in this news release relates, but is not limited to, statements with respect to the development of a proposed 12,000 barrel per day SAGD project including expectations respecting the timing of construction and commercial production, SOR ratios, operating life and estimated capital costs and the composition thereof. In addition information relating to total production is forward-looking information, as it involves the implied assessment, based on estimates and assumptions, that the resources underlying such production estimates exist in the quantities predicated or estimated, and can and will be profitably produced in the future.
The forward-looking information set out in this news release, is based on certain expectations and assumptions regarding, among other things, geological interpretations and modelling including caprock integrity and recoverable resources, the planned development schedule, environmental factors, socio- and project economics including capital, operating and third party cost estimates, and stakeholder engagement. These expectations and assumptions are based on certain factors and events that are not within the control of SilverWillow and there is no assurance they will prove to be correct.
Forward-looking information is subject to known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied in such forward-looking information. Such risks, uncertainties and factors include, among others, the risk that the regulatory approvals in respect of the Audet project will not be received in the timeframe or on the terms expected or at all; risks relating to the early stage of development of SilverWillow and the Audet project; and the general risks associated with exploring for, developing and producing bitumen, including many factors beyond the Corporation’s control, and no assurance can be given that the indicated level of bitumen or the recovery thereof will be realized. In general, estimates relating to bitumen production are based upon a number of factors and assumptions made as of the date on which the resource estimates for the Audet project were determined, such as geological and engineering estimates, which have inherent uncertainties. Additional risks relating to the business and operations of SilverWillow and to the resource estimates in respect of the Audet lands are set forth in the Corporation’s Annual Information Form and in its most recent Management’s Discussion and Analysis, which are filed under the Corporation’s profile on SEDAR at www.sedar.com.
SilverWillow undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward looking information.
SOURCE SilverWillow Energy Corporation
For further information:
Howard J. Lutley, President and Chief Executive Officer, at (403) 538-7030.