BlackPearl Resources entered into a lump-sum contract with Propak Systems for the engineering, procurement and fabrication of the central processing facilities for its Onion Lake thermal project. Propak has successfully constructed and installed processing facilities for three similar thermal projects in Saskatchewan, which are currently producing over 20,000 barrels of oil per day.
The first phase of the Onion Lake thermal project will have a design capacity for production of 6,000 barrels of oil per day. The full scope of the project entails construction of central processing facilities for steam generation, water handling and oil treating, drilling injection and producer wells, drilling water source and disposal wells, as well as installation of water, steam and emulsion pipeline infrastructure. The total cost estimate for this phase of the project is approximately USD 200M. The construction is expected to take 12 to 15 months, and steam injection will begin in the third quarter of 2015.
John Festival, president and CEO of BlackPearl, indicated, “The recent equity financings together with our credit facilities has provided us with the funds to fully finance development of the first phase of our Onion Lake thermal assets and we are beginning to ramp-up construction to ensure we can begin steam injection in 2015.”