$75 Million ENRC Investment in Alberta Heavy Oil
EnergyChain Announces $75 Million Investment in Alberta Heavy Oil
Driving Innovation. Expanding Potential. Fueling Alberta’s Growth.
EnergyChain is thrilled to unveil a groundbreaking $75 million investment into Alberta’s heavy oil sector. This initiative is aimed at leveraging the province’s vast heavy oil reserves to create an innovative, efficient, and sustainable energy framework.
Focused on developing advanced heavy oil projects, this investment targets formations such as the Clearwater and Lloydminster heavy oil sands, renowned for their exceptional resource potential. The funds will facilitate the development of state-of-the-art technologies and practices across several 10-well pad sites, emphasizing sustainability, transparency, and enhanced production methods.
By integrating blockchain-powered smart contracts and tokenized asset management, EnergyChain is creating a transparent and efficient ecosystem that will redefine heavy oil operations. This includes automated contract execution, real-time data monitoring, and a streamlined approach to project management.
Alberta’s Heavy Oil Potential
Heavy oil plays a pivotal role in Alberta's energy landscape, with formations like Clearwater and Lloydminster offering substantial resources:
Clearwater Formation
- Initial Production (IP) Rates: 772 barrels per day (bbl/d) per well (average 30-day rates).
- Decline Management: Advanced techniques mitigate production decline and optimize recovery.
Lloydminster Formation
- Proven Resources: One of Alberta’s most accessible heavy oil zones.
- Innovative Methods: Integration of enhanced oil recovery (EOR) techniques, including steam-assisted gravity drainage (SAGD).
Investment Breakdown
This $75 million commitment includes comprehensive funding for the lifecycle of heavy oil projects:
Drilling Costs
- Cost per well: $1.8–$2.8 million
- 10 wells total: $18–$28 million
Completion Costs
- Hydraulic fracturing, casing, and perforation: $1.5–$3 million per well
- 10 wells total: $15–$30 million
Pad Construction
- Site preparation and infrastructure: $500,000–$1.3 million
Midstream Infrastructure
- Pipelines and processing facilities: $700,000–$2.5 million
Operating Costs (Year 1)
- Heavy oil-specific costs: $5–$12/boe
- Annual production costs: $18–$44 million
Total Estimate
| Category | Low Estimate | High Estimate |
|---|---|---|
| Drilling | $18 million | $28 million |
| Completion | $15 million | $30 million |
| Pad Construction | $500,000 | $1.3 million |
| Midstream Infrastructure | $700,000 | $2.5 million |
| Operating Costs | $18 million | $44 million |
| Total | $52.2 million | $105.8 million |
This investment reinforces EnergyChain’s vision to expand Alberta’s heavy oil potential while promoting innovation, sustainability, and economic growth. It also underlines the vital role of ENRC tokens, as the blockchain framework provides a secure and efficient method of funding, tracking, and managing resources throughout the project lifecycle.
