BP also will make significant capital contributions to TdGP, with the ultimate contribution amount dependent on sanctioned recoverable resource after further exploration and delineation. This assures TdGP with secured financing until major project commercialization and beyond for the development of the vast TdG oilsands block.

TdG is a large, contiguous 185,000 acres of high quality oilsands lands with substantial delineation of the East Graceland area and considerable further potential in the less-delineated remainder of the leases.

VCI retains 100% control over its other significant oilsands leases (including the large Tristar block, south of Fort McMurray), its Heartland Upgrader assets (HUP) and its patented proprietary technologies.

Both the TdGP and VCI’s Tristar resource are expected to use in-situ steam assisted gravity drainage (SAGD). TdGP and VCI are in discussions to enter into a co-operation agreement for the further development and testing of VCI’s proprietary primary upgrading technology, Accelerated Decontamination Unit (ADC).

The SAGD process involves pairs of horizontal wells drilled from the surface. The injector well is generally placed parallel to and about five metres above the producer well. The injector is placed three metres offset from the base of the bitumen formation. The wells are usually spaced about 100 meters laterally apart.

ADC is one of VCI’s proprietary upgrading technologies. The process uses colloidal physics phenomena to aggregate and precipitate pure asphaltenes in a low pressure and low temperature environment, which results in very low energy consumption. Asphaltenes are rapidly and selectively separated from heavy residue creating a decontaminated oil which is pumpable with little diluent.

BA Energy, VCI’s wholly owned subsidiary, has an approved merchant upgrader project of about 260,000 bpd capacity. Official government approval for a 10,000 bpd semi-commercial project at TdG has also been granted. Large commercial project applications are under consideration by the owners for both TdG and Tristar.