RNS (a good one too!)16 Sep 2020 08:16
The purpose of the Report, compiled by Crosstrails Engineering LLC ("Crosstrails"), a subsidiary of Valkor, was to confirm the technical feasibility of a 10,000 barrel of oil per day ("bopd") oil sands plant in Eastern Utah (the "Plant") and to make a first estimation of capital and operating costs.
Highlights
· The Report provides analysis of the Plant operations and indicates favourable economics
· It is estimated that the total incremental cost of production, including mining, fuel, electricity, personnel and all expenses to take oil bearing ore from the earth to a commercial petroleum product is likely to fall below US$30 per barrel of oil ("bbl"), targeting less than US$25/bbl in the next round of design through heat recovery and various process optimisations
· Confirmation that the Plant could feasibly be constructed using conventional mining and oil processing equipment
· Report concludes that the Plant could be constructed in a relatively short time frame - estimated to be just over a year from the commencement of construction to the start of production
· Estimated capital cost for a 10,000 bopd Plant of US$185 million
· The completed Pre-FEED Report provides a high level of confidence in the project and will be used in the next project step, Front-End Engineering and Design ("FEED"), as the project progresses