Algar Lake expansion planned
Article content
Calgary-based energy company Alberta Oil Sands is hoping to expand production at its Algar Lake facility, located 40 kilometres southwest of Fort McMurray.
The company has signed an agreement with an undisclosed operator agreed to fully fund and drill at least three well holes. To earn an additional 24% interest at Algar Lake, the operator has agreed to fully fund and drill two extra holes. The operator has two years to earn its interest in Algar Lake. The operator is also obligated to deliver $2 million to Alberta Oil Sands upon closing.
CEO and company president Binh Vu says the multimillion-dollar project was not getting the attention it deserved, but will provide strong returns for shareholders and gain popularity.
Algar Lake is expected to become operational later this year.
AOS holds 106 bitumen leases in Alberta’s oilsands, primarily its flagship Clearwater and Grand Rapids projects. In addition, the company’s new Africa initiative is focused on active and known oil wells in east Africa.