The province has approved an oil sands project northwest of Conklin.
Grizzly’s May River development project is expected to produce around 12,000 barrels of bitumen per day (bpd).
It will use steam assisted gravity drainage technology, which minimizes its environmental footprint.
“This project is in the best interest of Alberta, and is another example of how we are responsibly developing our resources. Moving these projects forward shows that Alberta is open for business, and we are dedicated to encouraging investment in our province.” said Sonya Savage, Minister of Energy.
With the 12,000 bpd development, May River should be capable of supporting production of up to 100,000 bpd by 2022.
Now that the project has been approved by the province, Grizzly can make a final investment decision and start applying for environmental licenses and development permits.
According to the company’s website it acquired the property in February 2012 in an asset acquisition valued at $225 million.
The company filed the development application in December 2013.