SilverBirch Energy Corporation Provides Update on Regulatory Application for the Frontier and Equinox Projects

abarrelfullabarrelfull wrote on 29 Nov 2011 10:25
Tags: canada oil-sands silverbirch upstream

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SilverBirch Energy Corporation (TSX-V: 'SBE') ("SilverBirch" or the "Corporation") announced today that the Regulatory Application and Environmental Impact
Assessment for the Frontier Project (including the Equinox Project) (the “Project”), located
approximately 110 kilometres north of Fort McMurray, has been submitted.

The application, submitted to Alberta Environment, the Alberta Energy Resources Conservation Board and the Canadian Environmental Assessment Agency, seeks approval for an oil sands mining and bitumen extraction project that will produce approximately 277 thousand barrels per calendar day of partially de-asphalted bitumen from a phased surface mining development.

First production is anticipated to start in 2021 and over its life the Project is expected to produce 2.8 billion barrels of bitumen. The Frontier Project is the last remaining, undeveloped oil sands mining project to enter the regulatory process.

"SilverBirch considers the filing of the application a significant milestone in the advancement of the Project towards commercial production” said Howard Lutley, President and Chief Executive Officer of SilverBirch. The application addresses a number of concerns that were expressed by local stakeholders during the extensive consultation process. The Corporation also notes that the application includes a development plan that complies with the intent of the latest requirements for tailings and water management as well as applying best commercially available emissions management technologies.

The Project is jointly owned by SilverBirch and Teck Resources Limited ("Teck"). Each
company holds a 50% interest with Teck as the operator.

Corporate sanction of the Project could occur as early as 2014/2015 with construction
commencing in 2016 and commercial oil production obtained in 2020/2021.

SilverBirch is under no obligation to provide major project funding at this time and will not be proceeding with construction until a partnership agreement and funding solutions are in place.

The Corporation continues to review alternatives to fund its share of the future Project costs; this may include equity/debt financing, strategic or financial partnering, a reduction of its interest in the Project, or sale of the Project.

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