Extending the Boundaries of Commercially Viable Deposits of the Athabasca Oil Sands
Since 2004, Oilsands Quest has been focusing on exploration and delineation programs on its oil sands exploration permits and licences in northwestern Saskatchewan. We are conducting the first major oil sands exploration program in the province's history, and we are leading the development of the first commercial oil sands development in Saskatchewan.

Our Land Holdings in Saskatchewan and Alberta

Progress to Date

Oilsands Quest first became involved in Saskatchewan's oil sands industry in the fall of 2004 when it acquired oil sands exploration permits in the northwest region of the province. The company received regulatory approval for its initial drilling program in the fall of 2005 and immediately commenced construction of site infrastructure (roads and camp), and launched an exploration drilling program.

The first drilling results came back in early 2006 and showed that the first hole intersected 18 metres (59 feet) of bitumen-bearing McMurray formation that assayed at 16 per cent bitumen saturation. In all, 19 of 24 holes drilled that first season intersected bitumen-bearing McMurray formation.

During this time, the company continued building infrastructure including three camps, roads, access trails and airstrip. A second winter drilling program in late 2006 and early 2007 was augmented with 2D seismic surveys and extensive aero electromagnetic surveys. It was also at this time that the area of the original discovery was designated the Axe Lake Discovery. By February 2007, Oilsands Quest began initiating pre-commercialization studies with industry-leading technical specialists.

In April 2007, the company launched a comprehensive $4 million program of baseline environmental studies. In August, the company expanded its land position in Saskatchewan with the acquisition of five additional oil sands exploration licences. By the end of the 2007/2008 winter field exploration program, a total of 150 holes had been drilled in Saskatchewan and extensive 2D and 3D seismic surveys had been conducted.

In January 2008, Oilsands Quest initiated field testing of recovery processes at the Axe Lake Discovery area, to evaluate reservoir response to varying pressures and temperatures. This testing continued through 2009, and bitumen was successfully mobilized in October 2009.

Along with reservoir testing, an overburden testing program was initiated in late 2009 that drilled 16 core holes across the Axe Lake reservoirs. Analysis of those core samples by an independent reservoir research laboratory shows the potential for the Axe Lake overburden to contain steam and serve as a cap rock for steam assisted gravity drainage (SAGD) recovery.

In early 2010, Oilsands Quest submitted an application to the government of Saskatchewan for a SAGD pilot project that would become the first stage of a 30,000 barrel per day commercial oil sands development at Axe Lake. The company prepared detailed plans for that pilot project, but put the plans on hold late in 2010 while seeking a partner or other strategic alternative, given the significant capital expenditures associated with a commercial oil sands facility.