Deer Creek Closes Oil Sands Acquisition Financed by Lime Rock Partners12/6/1999
CALGARY, Alberta, December 6, 1999 — Deer Creek Energy Limited is pleased to announce that it has closed the purchase Athabasca Oil Sands Lease No. 24 from Talisman Energy Inc. The lease comprises 49,363 acres with an estimated 6 billion barrels of oil in place from which more than 800 million barrels are projected to be recoverable through the application of low pressure, steam assisted gravity drainage (SAGD) using proprietary MultiDrain well architecture (Deer Creek et al patent pending).
Financing in the amount of US$ll million has been provided by Lime Rock Partners in connection with Lease No. 24 farm-in test operations, property acquisition and further production testing. Deer Creek will resume MultiDrain SAGD operations at the Joslyn Creek test site this winter, as part of a development plan expected to result in start-up of 30,000 barrels of oil per day project during 2003.
Deer Creek Energy Limited is a privately owned Calgary based company specializing in the application of horizontal drilling and steam injection for the purpose of large scale heavy oil and bitumen production. Lime Rock Partners of Westport, Conneticut is a private equity firm focused on investment in the energy sector worldwide.
Mr. Glen Schmidt
President & CEO
Telephone: (403) 264-3777
Fax: (403) 264-3700