BlackRock Ventures reports that the Alberta Energy and Utilities Board and Alberta Environment have granted approval for the company's 20,000 barrel of oil per day Steam Assisted Gravity Drainage (SAGD) commercial project at Hilda Lake. The commercial operation will be called the Orion SAGD Project. BlackRock, 100% owner of the property, has operated a successful pilot at Hilda Lake for more than 7 years and has recovered 1.2 million barrels of oil. The Orion SAGD project has the potential to recover up to 190 million barrels of oil over a 25-year project life.
The company will now seek Board of Directors approval in November to begin detailed engineering for the commercial project. Detailed engineering is anticipated to cost approximately $10 million. Currently, Phase 1 of the Orion SAGD project is expected to cost $150 million and produce 10,000 barrels of oil per day.