Alberta-based Osum Oil Sands purchased the Orion Oil Sands Project from Shell Canada for US$297.25 million (CAD $$325 million), Osum said Friday.
The purchase was made through Osum’s wholly-owned subsidiary Osum Production Corp.
Osum now has a 100 percent working interest and operatorship of the project.
There is already a 20,000 barrel per day commercial development at Orion.
Second quarter production averaged approximately 6,800 barrels per day of bitumen from 22 well pairs.
Orion is expected to have an economic life in excess of 25 years.
The project began producing commercially in 2007 using steam assisted gravity drainage (SAGD) thermal heavy oil recovery technology.
Orion is located in the Cold Lake oil sands region of Alberta near a number of oil sands developments.
According to the government of Alberta, the province has recoverable bitumen reserves of 168 billion barrels.
Cold Lake currently produces 340,000 barrels per day.
Orion is approximately 11 mi (18 km) southwest of Osum’s Taiga Project.
Taiga has already received regulatory approval for the construction and operation of a 35,000 barrel per day facility.
Osum is a private oil sands provider focusing on Canadian oil and and carbonates.