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In February 2007, Oilsands Quest initiated pre-commercialization studies for its Axe Lake Discovery with industry-leading engineering and technology specialists. In September 2007, the company announced initiation of plans for fields tests of the reservoir at its Axe Lake Discovery.
In January 2008, following extensive, ongoing laboratory testing, reservoir simulation studies and the definition of a reservoir field test program to evaluate reservoir response to varying temperatures and pressures of steam and steam with solvents, Oilsands Quest announced a program of reservoir testing at up to three sites in the Axe Lake Discovery area. The three sites have varying overburden and pay thickness. Construction of the three test sites began in March 2008.
The purpose of the reservoir test program is to correlate field results with laboratory and simulation tests, to measure heat, pressure and fluid migration in the reservoir, and to further define recovery factors and energy efficiencies. Three phases of testing are anticipated.
Phase One steam injection at Test Site 1 is expected to begin in late summer 2008 and towards the end of 2008 on Test Sites #2 and #3 if appropriate. The purpose of Phase One is to measure resource-specific heat and fluid movement under specific operating conditions on a field scale to complement ongoing simulation and laboratory analysis programs.
Phase Two of the program will consider expanding the three test sites with horizontal wells and/or injection of mobilization agents other than steam. Current plans call for placement of horizontal wells in early 2009. The purpose of Phase Two is to evaluate and analyze information gathered from Phase One regarding mobilization agents and to measure field scale response using horizontal wells.
Phase Three of the Axe Lake Discovery test program is currently in the scoping phase; options being considered range from a continued reservoir test program to a technology feasibility pilot to a full commercial demonstration project.
Axe Lake Discovery Area
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