Alberta Energy Regulator Approves Dover Operating Corp. SAGD Project

CALGARY, ALBERTA--(Marketwired - Aug. 6, 2013) - The Alberta Energy Regulator (AER) has approved, with conditions, Dover Operating Corp.'s application to construct, operate, and reclaim a bitumen recovery project using steam-assisted gravity drainage (SAGD) technology.

Fort McKay First Nation expressed concern about the project's effects on its traditional land use activities in the area of its reserve lands adjacent to the project. The AER conducted a public hearing in Fort McMurray, Alberta, from April 23 to April 29, 2013. The hearing was closed on May 9. The panel set out 10 conditions for Dover, which are contained in the appendices of the decision report and are based on the evidence submitted by participants during the hearing. The conditions of the approval relate to the operations of the project and its early, progressive reclamation. The decision report is available on the AER website at www.aer.ca.

Since the hearing, Dover Operating Corp. changed its name to Brion Energy Corporation. The AER is prepared to issue the licence for the proposed project in the name of Brion Energy Corporation, though for convenience the decision refers to Dover.

SAGD injects steam at sub-fracture pressure into a horizontal well to deliver heat to the bitumen in order to reduce its viscosity so that it can flow more easily. Gravity then causes the bitumen to flow down to a second horizontal well positioned below the injector so it can be produced to surface.

The Alberta Energy Regulator ensures the safe, efficient, orderly, and environmentally responsible development of hydrocarbon resources over their entire life cycle. Over time, this will include allocating and conserving water resources, managing public lands, and protecting the environment while providing economic benefits for all Albertans.

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The Alberta Energy Regulator approved, with conditions, Dover Operating Corp.'s application for a bitumen recovery project using steam-assisted gravity drainage technology. The AER panel's decision, including the 10 conditions, is available at www.aer.ca.