Oilsands Quest drilled four wells in July 2010 to confirm the extent of the reservoir at Axe Lake and to satisfy our permit retention work obligations on the Saskatchewan permits. The objective of these wells was to provide additional information on the geology in the area and will not have a significant impact on the assessment of the resource in the Axe Lake area. Oilsands Quest are continuing with the additional processing and interpretation of the 1,847 kilometres (1,149 miles) of 2-D and 3-D seismic data in order to correlate this information to the results of the overburden drilling program and the Summer 2010 drilling program at Axe Lake. This interpretation of the seismic data and the correlation of the well information will be used to assist in the placement of the well pads for commercial development as well as mapping the glacial till overburden over areas where well control is lacking. During the quarter Oilsands Quest filed a proposal to the Saskatchewan Ministry of Environment (SME) for approval to produce up to 30,000 barrels per day of bitumen using steam-assisted gravity drainage (SAGD).
Oilsands Quest announced independent resource estimates for its Wallace Creek, Axe Lake, Raven Ridge and Eagles Nest properties. The resource estimates for the Axe Lake, Raven Ridge and Eagles Nest properties were also updated, but have not changed significantly from the previous evaluation. Results for the Wallace Creek estimates consist of a Discovered and Undiscovered Resources for 302 and 1,052 millions of barrels.
Oilsands Quest Inc. announced third quarter operational updates. Highlights include: evaluating the potential to develop its Axe Lake oil sands discovery in northwestern Saskatchewan using typical steam-assisted gravity drainage technology, completed a nine hole exploration drilling program on lands in the southwest corner of the Wallace Creek lease.
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