Source Petroleum to Begin Drilling at Peace River Heavy Oil Project
Source Petroleum, along with its joint venture partner, has initiated the planning of a multi-well drill program on the Harmon Valley Heavy Oil project in the prolific Peace River oil sands district.
Source Petroleum's Harmon Valley asset is situated 12 KM N.E. from the Baytex Energy heavy oil project (cold flow), 20 KM North of Shell Canada's Caddote Heavy Oil project (cold flow) and 25 KM N.E. of Black Rock Ventures Heavy Oil Project (cold flow) which was recently sold to Shell Canada for approximately $2.4 Billion Dollars.
The multi-well program will target the same blue sky formation where we believe to be an estimated 9 billion barrels of oil in place in the Peace River oil sands district.
Historical wells and well log data show that there may be an estimated potential in excess of 400 million OOIP at the Harmon Valley asset. Historical wells and well log data have also displayed excellent core porosities and log porosities of 29% and 31% respectively with estimated permeability of 5,000 milliDarcies. Secondary recovery methods on the project supports potential to drastically increase recovery.
A six-well drill program on the property is expected to begin this winter. Upon the completion of the six wells, Source Petroleum will have a 50% undivided interest in the project.