Hoole Grand Rapids
The Hoole Grand Rapids project is the first oilsands development that we are advancing. It is a material project located in the core of the Grand Rapids resource play, with best estimate Discovered Exploitable Bitumen In Place (DEBIP) of 1.6 billion barrels and 1.25 billion barrels of probable undeveloped and best estimate economic contingent resources.* The company believes the resources at Hoole are capable of supporting a project in excess of 100,000 barrels per day of production by 2022.
*Hoole volumes as per McDaniel report effective December 31, 2014. See forward looking statement advisory for disclosure on resource information and definitions.
Since 2004, in excess of $100 million has been invested through land acquisitions, stratigraphic drilling, engineering studies, and environmental field programs to bring this asset to the development stage.
Hoole Phase 1 is a commercial demonstration project. Our goal is to demonstrate reservoir performance, show that the facility design works, and confirm the economic viability of SAGD production from the Grand Rapids formation.
The project area is 10 kilometres northeast of Wabasca-Desmarais, Alberta, and the entire project sits within the Municipal District of Opportunity. Hoole Grand Rapids is close to high-grade road networks, and power and gas infrastructure are in place.
Industry peers have already applied for Grand Rapids SAGD projects in the region totaling over 450,000 barrels per day of production capacity.
Why Grand Rapids?
The Grand Rapids formation within Cavalier’s Hoole property exemplifies very positive reservoir characteristics conducive to proven SAGD development:
- Laterally continuous sand body allows for a repeatable surface development template
- Homogenous reservoir enables more predictable drilling and well production profiles
- Ostensibly no occurrence of top, middle or bottom water in core area, contributing to better reservoir performance and steam-to-oil ratios
- Competent extensive top seal (the Joli Fou shale) allowing for better steam chamber development and alleviating heat loss to overburden
- Good oil saturation, as high as 14 percent by weight
- Reservoir depth ~250 metres permits the use of established drilling and completion techniques
Over 70 oil sands exploration wells have been drilled on the Hoole property to delineate the reservoir. Source water and disposal wells necessary for SAGD development have also been drilled.