Grizzly Oil Sands ULC

Grizzly Oil Sands ULC

February 28, 2012 15:00 ET

Grizzly Oil Sands Announces Closing of Purchase of May River Property

CALGARY, ALBERTA--(Marketwire - Feb. 28, 2012) - Grizzly Oil Sands ULC. ("Grizzly") announces that it has closed the acquisition of the May River property from Petrobank Energy and Resources Ltd. for gross cash proceeds of Cdn $225 million.

Concurrent with closing, GLJ Petroleum Consultants Ltd. ("GLJ") provided Grizzly with an independent assessment of the May River property effective as of March 1, 2012. GLJ identified 1.8 billion barrels of exploitable bitumen in place and has assigned 824 million barrels of contingent resource as a best estimate using steam assisted gravity drainage and Grizzly's ARMS development model.

GLJ's development profile of best estimate contingent resource for the May River property shows gross production of 100,000 barrels per day.

Grizzly is planning a drilling program and environmental field work to support the regulatory application and development of the first phase of the May River SAGD project.

Financing was provided by Grizzly's existing shareholders, investment funds managed by Wexford Capital LP and Gulfport Energy Corporation (NASDAQ:GPOR).

Grizzly Oil Sands ULC. is a private, Calgary-based oil sands exploration and production company focusing primarily on the development of oil sands resources using thermal recovery methods. Grizzly's Advanced, Re-locatable, Modular and Standardized (ARMS) plant design was developed to improve capital efficiency, development schedule and operating metrics for its SAGD projects.

Contact Information

  • Grizzly Oil Sands ULC.
    John Pearce
    Chief Executive Officer