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Oil & Gas in Canada

Canadian Oil Sands 101
Oil Sands Technology

Our Focus

Doing Business in Canada
Investment Opportunities

Presentation

 

Oil & Gas in Canada

Canada's reserve base of crude oil is the second largest in the world. Only half of the country's prospective conventional oil and gas resource base has been utilized. Exploration and development continue to be a major focus of the Canadian industry. Canadian companies commit significant resources to exploration, development and field equipment. Annual investment exceeds $35 billion.

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Canadian Oil Sands 101

The Canadian oil sands are deposits of bitumen, heavy black viscous oil that will not flow unless heated or diluted with lighter hydrocarbons to make it transportable by pipelines and usable by refineries. Most of the oil sands of Canada are located in three major deposits in northern Alberta. These are the Athabasca-Wabiskaw oil deposits of north north-eastern Alberta, the Cold Lake deposits of east north-eastern Alberta and the Peace River deposits of north-western Alberta. The oil sands located in these three major areas is beneath approximately 140,200 square kilometers of north-eastern Alberta - an area larger than the state of Florida, twice the size of New Brunswick and more than four and a half times the size of Vancouver Island. Canada's oil reserves, which rank second in size only to those of Saudi Arabia, amount to approximately 179 billion bbl, of which the Canadian oil sands represent 175 billion bbl or nearly 98% of the Canadian total. At the 2014 production rate of approximately 2.2 million bbl per day, the oil sands have a reserve life index of nearly 190 years.

The Alberta deposits contain at least 85% of the world's total reserves of natural bitumen, but are concentrated enough to be the only deposits that are currently economically recoverable for conversion to oil at current prices. The largest bitumen deposit, containing about 80% of the total, and the only one suitable for surface mining, is the Athabasca oil sands along the Athabasca River. The mineable area (as defined by the Alberta government) includes 37 townships covering about 3,400 square kilometers (1,300 sq. mi.) near Fort McMurray. The smaller Cold Lake deposits are important because some of the oil is fluid enough to be extracted by conventional methods. All three Alberta areas are suitable for production using in-situ methods such as cyclic steam stimulation and steam assisted gravity drainage.

The Alberta oil sands have been in commercial production since the original Great Canadian Oil Sands (now Suncor) mine began operation in 1967. A second mine, operated by the Syncrude consortium, began operation in 1978 and is the biggest mine of any type in the world.

The significant expansion of Canada's oil sands production that is anticipated to occur over the next several years is expected to have a profound effect on Canada's stature among global oil producing nations. Oil sands account for slightly more than 50% of total western Canadian crude oil production and approximately 45% of total Canadian oil production. According to CAPP it is anticipated that by 2020 conventional Canadian oil production will decline by approximately 45% to 0.57 million bbl per day, while the production from Alberta's oil sands will nearly quadruple to 4.0 million bbl per day, representing approximately 80% of total Canadian oil production. In addition, it is anticipated that the contribution from the oil sands resource will increase to approximately 14% of total North American consumption by 2020, more than doubling its current level of contribution.

According to International Energy Agency (IEA) and are current as of January 2015: Global demand for energy is expected to rise by 33% by 2035 as economies in both developed and emerging countries continue to grow and the standard of living improves in the developing world. The world will need to invest $48 trillion in energy supplies from 2013 to 2035. Meeting increased energy demand will require an increasingly diverse energy supply base - continuing reliance on conventional petroleum resources, unconventional hydrocarbons (oil sands, shale gas, natural gas from coal, etc), alternatives (solar, wind, nuclear, hydro, etc) - as well as improved energy efficiency across all sectors of the economy. "... fossil fuels continue to meet the bulk of the world's energy needs ..."

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Oil Sands Technology

Oil Sands Extraction
The Corporation continues to review several potential extraction techniques for development of its resources. These range from the widely-used methods of Steam Assisted Gravity Drainage ("SAGD") and Cyclic Steam Stimulation ("CSS"), to more experimental techniques like Toe-to-Heel Air Injection (THAITM). The Corporation is focused on the application of proven technology, but is aware of rapid advancements in technology associated with Canada's oil sands deposits and is considering all reasonable methods that can result in the lowest cost and most efficient production of reserves. The brief discussion below summarizes employable bitumen extraction technologies.

Steam Assisted Gravity Drainage
SAGD was developed in the 1980s by an Alberta government research center and fortuitously coincided with improvements in directional drilling technology that made it quick and inexpensive to do by the mid-1990s. In SAGD, two horizontal wells are drilled in the oil sands, one very near the bottom of the formation and another about five meters above it.

These wells are typically drilled in groups off central pads and can extend for kilometers in any direction. In each well pair, steam is injected into the upper well and the heat melts the bitumen, which allows it to flow into the lower well, where it is pumped to the surface. SAGD has proved to be a major breakthrough in production technology since it allows very high oil production rates and recovers up to 60% of the oil in place. Most major Canadian oil companies now have SAGD projects in production or under construction in Alberta's oil sands areas and in Wyoming, U.S. Examples include Japan Canada Oil Sands Ltd.'s (JACOS) project, Suncor's Firebag project, Nexen's Long Lake project, Petro-Canada's MacKay River project, Husky Energy's Tucker Lake and Sunrise projects, Shell Canada's Peace River project, Encana's Foster Creek and Christina developments, ConocoPhillips Surmont project and Devon Canada's Jackfish project.

Cyclic Steam Stimulation
Steam injection for recovery of heavy oil has been in use in oil fields of California since the 1950s. The CSS or "huff-and-puff" method has been in use by Imperial Oil at Cold Lake since the 1980s and is also used by Canadian Natural Resources at Primrose and Wolf Lake and by Shell Canada at Peace River. In this method, the well is put through cycles of steam injection, soak and oil production. First, steam is injected into a well at a temperature of 300 to 340 degrees Celsius for a period of months. Then, the well is allowed to sit to allow heat to soak into the formation. Later, the hot oil is pumped out of the well for a period of months. Once the production rate falls off, the well is put through another cycle of injection, soak and production. This process is repeated until the cost of injecting steam becomes higher than the net revenue from producing the recovered oil. The CSS method is capable of achieving recovery factors of around 20% to 25%. The disadvantage is that the cost to inject steam is high.

Vapor Extraction Process
Vapor Extraction Process ("VAPEX") is similar to SAGD but instead of steam, hydrocarbon solvents are injected into the upper well to dilute the bitumen and allow it to flow into the lower well. It has the advantage of much better energy efficiency than steam injection and it achieves some partial upgrading of bitumen to oil right in the formation. It is a very new technology, and still experimental, but it has attracted much attention from oil companies, who are beginning to experiment with it .

Combined Recovery Methods
The above three methods are not mutually exclusive. It is becoming common for wells to be put through one CSS injection-soak-production cycle to condition the formation prior to going to SAGD production, and companies are experimenting with combining VAPEX with SAGD to improve recovery rates and lower energy costs.

Toe-to-Heel Air Injection (THAITM)
THAI is a new and experimental method that combines a vertical air injection well with a horizontal production well. The process ignites oil in the reservoir and creates a vertical wall of fire moving from the "toe" toward the "heel" of the horizontal well, which burns the heavier oil components and drives the lighter components into the production well, where it is pumped out. In addition, the heat from the fire upgrades some of the heavy bitumen into lighter oil right in the formation. This method offers significant potential if it can be properly used in a target formation.

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Our Focus

Oilberta's principal responsibility to its clients is to intelligently invest in conventional and unconventional oil assets. Our operations are carried out in Canada and internationally. Our partners are positioned among the best in the oil and gas industry, and by having preferential access to first hand and strategic information they are enabled to actively participate in our growth.

Our focus is on the development of conventional and unconventional oil in Canada and Internationally. Optimization Solutions is our master piece where in a collaborative process we assess and resolve the challenges with reservoir increase, production increase, cost reduction, and environmental impacts. We are also quite resourceful to assist our clients in procuring the required equipment and supplies in the optimization process.

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Doing Business in Canada

As an affluent, high-tech industrial society, Canada has a market-oriented economic system, pattern of production, and affluent living standards. Canada respects and relies on international trade and investment for its economic growth and prosperity. The Canadian government is supporting the industry by providing a safe, transparent, and secure investment environment for all investors who are interested in the Canadian oil and gas industry.

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Investment Opportunities

Oilberta has made it possible for all investors to participate and invest in the Canadian unconventional oil industry. You don't have to be a millionaire to invest. You can join Oilberta, investing in this industry, in three ways:

•  Direct Investment – Specific Project
This investment is suitable for those with $5,000,000 or more in paid-in capital. You can invest in a specific project i.e. initiate your exclusive new investing project.

In this approach, Oilberta will provide various opportunities to the investor and outline the overall aspects of the investment. The investor will select the project that suits his/her goals and Oilberta will do the rest and manages the project.

•  Direct Investment – Oilberta’s Portfolio
This investment is suitable for those with $500,000 or more in paid-in capital. You can invest in Oilberta's portfolio of projects.

In this approach, Your investment is part of a bigger pool and is invested in a wide range of projects. You utilize Oilberta’s expertise to pick proper projects and investments opportunities and therefore mitigate the risk of individual projects and benefit from the overall performance of the projects.

•  Oilberta Participating Debenture
Participating debentures are tailored for those who are expecting a high return and at the same time want a certain level of security for their investment.

When you buy participating debentures, you are entitled to receive two interests on your investment:

Fixed interest of 12% per year.

Bonus interest of up to 3% per year.

Your principal investment will be returned to you at the end of the debenture term (3 years).

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Presentation
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