JACOS sells Hangingstone Demo to newcomer Greenfire Oil and Gas
Japan Canada Oil Sands Limited (JACOS) announced the sale of its Hangingstone Demo facility to Calgary-based Greenfire Oil and Gas.
The pilot plant began production in 1999, using steam-assisted gravity drainage (SAGD) technology to extract bitumen, making it one of the oldest in-situ operations in Alberta.
The demo plant was shut-down in the spring of 2016 due to encroaching wildfires, and has remained offline ever since. JACOS formally suspended operations in 2017 due to low oil prices.
According to JACOS, the facility produced 35 million barrels of bitumen during its 17 years of operations.
Financial terms of the deal were not disclosed. Parent-company Japan Petroleum Exploration (JAPEX) says it expects to book a non-operating profit of US$30 million from the sale.
Greenfire has yet to reveal its plans for the demo plant, but has informed the Alberta Energy Regulator (AER) of its intention to restart operations with a year.