Grizzly buys estimated 100,000 bpd May River property for $225 million

Calgary-based oil sands exploration and production company Grizzly Oil Sands on Tuesday announced that it has closed the acquisition of the May River property from Petrobank Energy and Resources  for gross cash proceeds of  $225 million.

Grizzly says an independent assessment of the May River property by GLJ Petroleum Consultants identified 1.8 billion barrels of exploitable bitumen in place and assigned 824 million barrels of contingent resource as a best estimate using steam assisted gravity drainage and Grizzly's ARMS development model.

GLJ's development profile of best estimate contingent resource for the May River property shows gross production of 100,000 barrels per day according to the press release.

Grizzly is planning a drilling program and environmental field work to support the regulatory application and development of the first phase of the May River SAGD project.

Financing was provided by Grizzly's existing shareholders, investment funds managed by Wexford Capital LP and Gulfport Energy Corporation.