Cadotte Block
Key Characteristics
● 75% average working interest
● 13º API oil
● 18,560 gross acres of land held
● Successful vertical well drilled. Horizontal test well and several vertical delineation wells planned.
Peace River North Block
Key Characteristics
● 50% average working interest
● 11º API oil
● 5 - 10 metres of oil pay
● 11,520 acres of land held
● One horizontal test well drilled which produced oil and water. Source of the water to be determined
● Additional testing planned for 2005
Western Block
Key Characteristics
● 50% average working interest
● 9 - 13º API oil
● 18,560 acres of land held
Infrastructure
The Seal discovery is in an area of northern Alberta with little heavy oil infrastructure. BlackRock and its partners have had to face the typical challenges of establishing operations in a remote area including building housing facilities for operating personnel and constructing roads, processing facilities and a heavy oil pipeline to transport crude oil to sales markets.
A 10,000 barrel per day processing facility was constructed in 2003 and it is being expanded to 15,000 barrels per day in 2004. BlackRock has a 50% interest in this facility.
In 2004, BlackRock completed the construction of a 58,000 barrel per day heavy oil pipeline which will take blended crude from the Seal area to the Nipisi terminal, a distance of 50 miles, where it will be injected into the Rainbow Pipeline system and transported to Edmonton. BlackRock owns 45% of the pipeline. The pipeline became operational in April 2004.
Construction of the processing facility and pipeline will dramatically improve the economics of our Seal production. We estimate that the netback on a barrel of Seal production should increase by approximately $5.50 per barrel as a result of the installation of these facilities.
Source: Blackrock Ventures Inc, http://www.blackrock-ven.com
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