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What
are Oil Sands?
Oil
sands are crude deposits that are substantially heavier
(more viscous) than other crude oils. Oil sands consist
of sand, bitumen, mineral rich clays and water. Bitumen
is a product of the oil sands that requires upgrading to
synthetic crude oil or dilution with lighter
hydrocarbons to make it transportable by pipelines and
usable by refineries.
Alberta's
oil sands are abundant, accessible, and affordable
sources of crude oil. With the continuing decline of
conventional North American crude oil reserves, the
focus is turning towards oil sands exploration,
development, and production.
The
opportunity presented by heavy oil runs counter to the trend
of declining world oil reserves. At a time when conventional
light oil reserves decline faster than the rate of replacing
them, the identification and commercialization of heavy oil is
enjoying an upward trend.
Heavy oil production in Alberta
now exceeds that of light oil, and the disparity is predicted
to widen into the future. Although the tar sands of North East
Alberta are forecast to be a large part of this situation,
there is an increasing trend in the identification of
previously overlooked mobile heavy oil in the north central
region of the province, distinct from the tar sands. These oil
finds are characterized by significantly higher production
rates and larger areal extent than had been understood in
previous times.
The
combination of large deposits and significant flow rates has
an undeniable economic attraction for Deep Well Oil & Gas,
Inc. (DWOG). The Corporation intends to build on prior
experiences where ‘new’ areas were identified and exploited
through application of new technology and understanding. DWOG
is focused on maximizing value by enhancing product sales
through application of existing technology for a significant
long-term benefit.
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