Sunshine Oilsands has signed a MoU with the China Petroleum Engineering & Construction Corporation (CPECC) in regards to the West Ells Phase II project expansion in northern Alberta, Canada.
West Ells Phase I is currently in production with positive reservoir performance and the production volume is continuously increasing. The designed production capacity of Phase I is 5,000 bpd.
West Ells Phase II is an expansion of the Phase I project with an additional production capacity of 5,000 bpd. As at the date of this announcement, all 8 wells have already been drilled. Additional works required for the project expansion include reviewing and refining of some of the designs, completion works for the wells, and surface facility construction.
The total capital required for completion of the Phase II is expected to be approximately USD$50m as it will share most of the surface facilities with Phase I. Upon completion of Phase II, the total production capacity of West Ells will be 10,000 bpd.
CPECC intends to work as the contractor and undertakes the engineering, procurement, construction and operation maintenance work.