Ikelic - Alliance Digital Repository

0/L SANDS
phalt Ridge, near Vernal, Utah. The plant is
planned to process 6,400 tons per day, with an
output of 3,750 barrels per day.
Cost of the plant is estimated at $24 million and
production costs are expected to be $9 per bar
rel.
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CORPORATIONS
SOLV-EX AND UNITED TRI-STAR
RESOURCES TEAM UP
Solv-Ex Corporation of Albuquerque, New
Mexico and United Tri-Star Resources Ltd. of Cal
gary, Alberta, Canada have agreed on a joint ef
fort to develop Solv-Ex's oil sands lease in Al
berta, Canada.
Terms of the agreement call for United to con
tribute $3 million to complete preconstruction re
quirements for a 5,000 barrel per day demonstra
tion plant. Also included in the agreement is the
formation of a joint venture to sell Solv-Ex's
recovery technology in Australia. The Solv-Ex
technology involves recovery of both bitumen
and metals (primarily aluminum oxide) from the
oil sands.
In return for its capital contribution, United will
receive a 10 percent working interest in the lease
and the exclusive right to arrange financing for
the demonstration plant, estimated to cost
$65 million.
Separately, Solv-Ex announced an agreement
with Suncor Inc. to obtain access to Suncor's tail
ings from its Fort McMurray oil sands plant.
Solv-Ex plans to process the Suncor tailings to
recover metal values.
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3-8
MURPHY OIL SEES FAVORABLE PROSPECTS
FOR CANADIAN HEAVY OIL AND OIL SANDS
In remarks made by C. Demlng, President of Mur
phy Oil Corporation, to security
analysts in New
York City, New York in October 1994, he noted
that Murphy's efforts in Canada are dominated
by Its unique holdings of heavy oil. The advent of
intensive horizontal drilling, many times assisted
by steam, has substantially lowered per-barrel
capital and lifting costs. As a result, this resource
now provides good returns at current prices of
US$11.00 per barrel. Murphy's production is
7,300 barrels per day and will increase to
9,500 barrels per day by the end of 1995.
In addition, Murphy's 5 percent stake in
Syncrude is now an important part of the produc
tion mix in Canada. This asset is performing bet
ter than forecast in the all-important areas of
production volume and mining, extraction, and
upgrading costs, which respectively are forecast
for 1995 at 9,000 barrels per day (Murphy's
share) and US$11.50 per barrel. As North
American oil slowly but inevitably declines, this ir
replaceable asset, already
the largest single
source of crude in Canada, increases in value.
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GOVERNMENT
OIL SANDS ORDERS AND APPROVALS
USTED
The recent orders and approvals in the oil sands
area issued by Alberta, Canada's Energy
Resources Conservation Board are listed in
Table 1 (next page).
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THE SYNTHETIC FUELS REPORT, JANUARY 1995