Today we are profiling Tamm Oil & Gas Corp (TAMM.OB):
TAMM has acquired a 100% working interest in 55 contiguous sections of mineral rights or 35,200 acres, at Manning, Alberta in the Peace River Oil Sands Area. These mineral rights are considered to be prospective for heavy oil in the Mississippian Debolt, Elkton and other formations.
-"Internal company estimates of potentially 3 billion original barrels of heavy oil in place on the properties within the various zones with the majority in two specific zones".
-Current plan for 2009/2010 winter season would be a 3-5 well drilling and coring program with an additional 20 to 30 km seismic program to supplement the drilling and core data and thus continue to evaluate the potential resource.
-Work is currently ongoing to further study geology and acquire "trade data" seismic and map the adjoining lands for other potential acquisitions and to optimize the drilling/coring program.
-Subsequent plans might be building of sufficient year-round access and infrastructure to support increased development, ongoing drilling and seismic to more fully define the reserve, a test pilot of a one or two well production program -- to test for optimum methods of recovery -- CCS -- either vertical or horizontal or both, SAGD type enhanced recovery, Cold Flow, TIDE or other models.
-Current typical costs for these types of production methods, at the commercial pilot stage are around $40/bbl -- thus a good return for initial production aiming at 18% primary recovery and cyclic steam at 30% recovery. As production in this area is still in the early stages, the anticipated recovery rates may increase with experience in working with these potential reservoirs.
-Based on the results of the initial testing -- secondary testing might include a full scale pilot of between 5000 to 8000 bbls/d. This could potentially begin in 2011/2012.
Further information on Tamm Oil & Gas Corp (TAMM.OB), visit: http://www.tammoilandgas.com/s/AreaOfExploration.asp
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