SUNSHINE OILSANDS AND CPECC TO DEVELOP WEST ELLS PHASE II EXPANSION

Calgary based Sunshine Oilsands and China Petroleum Engineering & Construction Corporation (CPECC) have signed a Memorandum of Understanding in relation to the West Ells Phase II project expansion.
West Ells Phase I is currently in production with positive reservoir performance and the production volume is continuously increasing. The designed production capacity of Phase I is 5,000 barrels per day.
West Ells Phase II is an expansion of the Phase I project with an additional production capacity of 5,000 barrels per day. As at the date of this announcement, all 8 wells have already been drilled. Additional works required for the project expansion include reviewing and refining of some of the designs, completion works for the wells, and surface facility construction. The total capital required for completion of the Phase II is expected to be approximately USD50m as it will share most of the surface facilities with Phase I. Upon completion of Phase II, the total production capacity of West Ells will be 10,000 barrels per day.
The average production costs per barrel is expected to be significantly reduced after the Phase II expansion as fixed costs account for a significant portion of the production cost and can now be shared with the Phase II project.
Sunshine Oilsands is focused on the development of its significant holdings of oil sands leases in the Athabasca oil sands region of Alberta, Canada. The Corporation owns interests in approximately one million acres of oil sands and petroleum and natural gas leases in the Athabasca region. (Source and image: Sunshine Oilsands / construction of West Ells facility)