Shell Buys Canadian Land Leases
Shell recently established SURE Northern Energy, a Canadian corporation, to evaluate and potentially develop heavy oil resources secured in the February 8, 2006, Alberta Department of Energy Oil Sands Public Offering. SURE Northern submitted the successful bid of C$465 million (approximately $400 million) for 10 parcels of land through a land agent.
"We are delighted to have secured this heavy oil acreage," said Marvin Odom, executive vice president of Shell EP Americas. "Royal Dutch Shell has a suite of both enhanced and new heavy oil technologies that we could potentially apply to this type of resource. While not all of these technologies are commercially proven, we believe there is significant potential for us to pursue this opportunity and the first step is to further appraise this resource."
"Odom added that the move will allow Shell to assess new and emerging technology. "It complements our existing strong position in Canadian oil sands through Shell Canada Limited (SCL)," he said. "The establishment of SURE Northern does not change the relationship between Royal Dutch Shell and Shell Canada, and as the major shareholder in Shell Canada, Royal Dutch Shell maintains its full support for SCL's ongoing business, and its strong commitment to SCL's future success and growth".
Appraisal wells are currently being planned for this year.
Steven Crane will be the president of SURE Northern and will be based in
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