Grizzly is one of the largest landholders in the oil sands industry, with 800,000 acres of leases in more than 30 separate properties across the Athabasca, Cold Lake and Peace River oil sands regions. All are Company-operated and the entire portfolio is at nearly 100 percent working interest. This provides a vast inventory of properties for the Company to develop for years to come.
Many of Grizzly's properties adjoin or are near high-profile projects by leading industry competitors. Delineation drilling, totalling 130 wells through mid-2013, has been done and/or contingent resources assigned at Silvertip/Ells North, Kodiak, West Ells, Birchwood, Firebag River and Saleski West (in addition to the current Algar Lake, May River and Thickwood project areas). Approximately two-thirds of Grizzly’s land base remains unexplored.
The land base provides exposure to numerous well-understood and low-risk McMurray Formation opportunities, as well as unconventional McMurray opportunities, plus the Grosmont carbonate reservoir, which is being piloted by a competitor. The resource base is large in scale, totalling 3.2 billion barrels of best estimate contingent resources, according to GLJ. Grizzly’s overriding priority is to develop its core properties first and become fully competent in the execution of project construction and operation at Algar Lake and May River.
Grizzly’s diversified land base provides advantages, allowing the Company to respond to successful new technology applied by other producers, to improved reservoir understanding in various plays, and to developing infrastructure such as roads, pipelines and utility corridors. In addition, the undeveloped lands provide optionality regarding Grizzly’s future capital needs. With the oil sands tenure system providing 15-18 years of development time, the leases are long-term corporate assets.