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Orion Oil Sands project sold for $325 million

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Osum Oil Sands Corp. says it's buying the Orion Oil Sands project in northeastern Alberta from Shell Canada for $325 million.

Osum Oil Sands Corp. says it's buying the Orion Oil Sands project in northeastern Alberta from Shell Canada for $325 million.

Calgary-based Osum said the operation, located in the Cold Lake oilsands region, will significantly increase its current production.

Osum said first-quarter production at Orion Oil Sands averaged about 6,700 barrels per day of bitumen and the project is expected to have an economic life in excess of 25 years.

The company says Orion Oil Sands is close to another of its oilsands developments in the Cold Lake area, which has received regulatory approval for the construction and operation of a 35,000 barrel per day facility.

The transaction with Shell Canada is expected to close at the end of July.

Established in Alberta in 2005, Osum Oil Sands Corp. is a private oilsands producer focused on in-situ recovery technologies, which pump steam underground to extract the sticky bitumen.

News from © Canadian Press Enterprises Inc., 2014

by Journal Of Commerce

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