Sons And Daughters Of BBCMF Energy: Oil, Gas - Companies/Research, Domestic & Foreign.

[NYBob]

BQI Saskatchewan startup rolls along -

Gary Park

For Petroleum News - Vol. 12, No. 36 -
Week of September 09, 2007
Providing coverage of Alaska and northern Canada's oil and
gas industry -

Oilsands Quest shows no signs of wilting its trail-blazing
efforts to commercialize Saskatchewan’s oil sands deposits.

It picked up five of six blocks of exploration licenses
offered in the Saskatchewan government’s latest land sale,
paying C$252 million for 110,000 acres, plus an annual
rental of about C$4.30 per acre, and added one oil
shale exploratory permit to its holdings.

In addition, the startup company has regulatory approval
to drill 97 exploratory wells on its permits in
northwestern Saskatchewan, which expire March 31, 2008.

Two rigs are being mobilized to start drilling by
mid-September before freeze-up.

The approvals cover 70 holes in the Axe Lake area,
where Oilsands Quest has issued a “best preliminary estimate”
for its properties of up to 750 million barrels of
original bitumen in place.

It is now conducting pre-commercialization studies and
running tests to assess the best recovery method.

Until those results are known, the company is not ready
to set any timelines for development.

It said eight drilling rigs have been committed to operations
over the next eight months, although the winter program
will wait for “ideal” conditions.

Errin Kimball, Oilsands Quest’s vice president of exploration,
said the program is the next chapter in the development of
Axe Lake, increasing the company’s knowledge of the reservoir
as potential production capability is assessed.

Oilsands Quest is combining 2-D and 3-D seismic, electrical
resistance tomography and drilling to reduce risk
and accelerate timelines for exploration and field
production testing — a strategy it intends to use
for its adjoining permits in Alberta.

BQI - black gold -
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22510826

http://investorshub.advfn.com/boards/board.asp?board_id=6668