The evaluation showed that Grand Rapids formation has 93 million barrels of probable reserves with a net present value of about $379m, compared to Cavalier’s preliminary 10,000 barrel per day in-situ SAGD oil sands development, which covers about two sections of the Hoole Lands.
The formation also includes 719 million barrels of economic contingent resources with a net current value of $1.949bn to the remaining about 54 sections of Cavalier’s Hoole Lands.
Cavalier president and CEO William Roach said that the new evaluation proves that Hoole Lands are an important asset for Cavalier.
The Hoole Project, which is expected to begin production in 2015 and first full-year of production in 2016 is likely to produce about 80,000 barrels per day by 2022.
Cavalier has invested about $50m since 2004 through land acquisitions, stratigraphic drilling, engineering studies, and environmental field programs to develop the asset.
Located 10km northeast of Wabasca-Desmarais, Alberta, the entire project sits within the Municipal District of Opportunity.
