UTS Energy announced the 2009 drilling results from Leases 421, 022 and 023 (the "Lease 421 Area") located east of the Firebag River in northeastern Alberta. These leases are owned jointly with Teck Cominco on a 50:50 basis.
Fifty-four core holes were drilled in 2009, bringing the total number in the Lease 421 Area to fifty-nine including the five core holes that were
Forty-nine of the wells contain prospective oil sands that range in thickness from 10 to 40 meters (with an average of 19 meters) with overburden thicknesses ranging from 7 to 68 meters (with an average of 39 meters). These results are preliminary and are derived from analysis of the well logs and visual inspection of the cores. The oil sands display a high degree of lateral continuity and are present in 24 of the 29 sections. Grades up to 17 mass percent bitumen were obtained from cores drilled in 2008. Results of the core analyses for the 2009 wells will be available in the third quarter of 2009.
"The results to date indicate another significant oil sands discovery and add to the tremendous growth opportunities for UTS," said William Roach, President and Chief Executive Officer. "After Frontier and Equinox, this is the third significant discovery in our exploration portfolio, and comprises 24 prospective sections. Since 2005, we have discovered in excess of 60 prospective sections of new mineable resources over and above our Fort Hills Project holdings. It is also noteworthy that this latest discovery is directly northeast of the Total operated Northern Lights Project leases."
UTS is focused on the creation of shareholder value through exploration, development and production of hydrocarbon resources, mainly mineable oil sands deposits from the Athabasca Oil Sands Area in north eastern Alberta. UTS was instrumental in re-establishing the Fort Hills Oil Sands Project and is the principal founder of the Fort Hills Energy Limited Partnership. UTS holds a 20 per cent working interest in the Fort Hills Project, a mature mining project, located north of Fort McMurray.
Beyond the Fort Hills Project, UTS has identified additional development opportunities through a successful and continuing lease acquisition and exploration program. UTS has a 50 per cent working interest in each of the Frontier and Equinox Projects. The Frontier Project is an oil sands mining project associated with the development of that portion of the Athabasca Oil Sands Area identified by Alberta Oil Sands Lease Nos. 311, 468, 470, 477, 610 and 840 and is located in northeastern Alberta approximately 100 kilometres north of Fort McMurray and 500 kilometres northeast of Edmonton.
The Equinox Project is an oil sands project related to the development of Alberta Oil Sands Lease No. 14 located in northeastern Alberta. The Equinox Project bisects the Pierre River Project, approximately 90 kilometers north of Fort McMurray and 500 kilometers northeast of Edmonton.
Further, UTS holds a 50 per cent working interest in an additional 97,024 hectares (242,560 acres) of prospective oil sands leases. This includes the Lease 421 Area with 13,312 hectares (33,280 acres) and located northeast of Total E&P Canada Ltd.'s Northern Lights Project and directly north of lands owned by Imperial Oil Limited. A total of 59 core holes have been drilled in the Lease 421 Area, enough to confirm a major new discovery.
UTS is committed to responsible resource development by conducting its business in a manner that reduces environmental effects, protects workers' and communities' health and safety and recognizes stakeholder interests.
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