Financial Post (Canada): Athabasca project to help Western Oil double production volume in 5 years: “Western Oil Sands holds a 20% stake in the Athabasca Oil Sands Project together with its partners Shell Canada Ltd. and Chevron Canada Ltd. It also has a minority stake in Shell Canada's Scotford upgrader in Edmonton.” (ShellNews.net) 7 Dec 04
Dec 07, 2004
TORONTO - Western Oil Sands Inc. said yesteray it plans to double its production volume over the next five years now that the start-up period at the Athabasca Oil Sands Project and Scotford Upgrader is complete.
The company plans to increase production volume at these two sites through debottlenecking and expansion of its existing facilities, said president and chief executive officer Guy Turcotte, in a release. "Beyond a shadow of a doubt, 2004 evidenced the Project's ability to meet and exceed the design capability as stated in the initial feasibility study," said Mr. Turcotte.
The company said it sees cash flow in 2005 at about $160-million ($3 a share), and net earnings at $65.8-million ($1.24), based on production of 155,000 barrels from the project. Western's net share of the production is estimated at 31,000 barrels a day. Western hopes to eventually increase its share of production to more than 100,000 barrels a day.
Western Oil Sands holds a 20% stake in the Athabasca Oil Sands Project together with its partners Shell Canada Ltd. and Chevron Canada Ltd. It also has a minority stake in Shell Canada's Scotford upgrader in Edmonton. Capital activities in 2005 will be concentrated on debottlenecking, Western said.
Upon completion, output may increase up to 180,000 barrels a day by the end of 2006 and up to 200,000 barrels a day into 2007/2008. Western has earmarked $110-million for its 2005 capital budget. More than half of the budget will be used for debottlenecking and profitability projects, while the rest is planned for initiatives related to the Muskeg River Expansion project and for sustaining capital. Western plans to finance these expenditures with 2005 cash flow.