Arctic Natural Gas
Canadian Oil Sands holds significant natural gas resource in Canada’s arctic islands.
In 2006, Canadian Oil Sands acquired extensive natural gas resources concentrated primarily in the Drake and Hecla fields onshore and offshore Melville Island in the Canadian Arctic. The majority of our interests in these fields are “carried” by our partners, meaning there is limited requirement for us to fund development costs and there are no lease rental payments or associated interest costs. The acquisition secures a partial hedge against our future natural gas requirements for the Syncrude operations. Furthermore, it represents another sizeable, strategic, and long-term energy asset that has tremendous upside potential.
This resource is not currently in production and there are no development plans at this time or in the foreseeable future.
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