Oilsands Quest (BQI) update #11
Posted by intelledgement on Wed, 09 Jul 08
Our tar sands baby, Oilsands Quest (BQI), today released more data supporting the viability of the company’s proposed bitumen mining/processing operations in Saskatchewan. Analysis by an independent testing lab obtained “linear coreflood recovery factors as high as approximately 90 percent” which, BQI’s press release stated, ”are indicative of the potential to achieve relatively high recovery factors in the field.” Additional work by other analysts addressed methodological factors; BQI are planning to run field tests later this summer which will be informed by these analyses.
According to CEO Christopher Hopkins, “These new results combined with earlier reports confirm McDaniel & Associates assessment that this is a remarkable reservoir, with permeabilities as high as any other in the industry.” So long as long-term oil prices remain north of $60/BBLS—we are guessing breakeven here could be as low as $35-$40/BBLS, depending on the cost of natural gas—this is looking more and more like a can’t-miss. We look forward to the test results.