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Oil companies ecstatic
Chris Clegg
South Peace News
High Prairie oil and gas companies are ecstatic that an all-weather road into the oil rich Seal Lake district will finally be built.
Arrow Energy Ltd. announced the project March 26 which ends nearly five years of efforts to get the road built.
“Arrow is pleased to announce that it has received approval from Alberta Sustainable Resource Development, subject to filing of normal course regulatory documentation, to begin construction of the Peavine Connector Road,” reads a news release issued by the company.
The government’s green-lighting of the project means Arrow can now go to tender on the road, estimated to be about three kilometers in length. While the length of the road is not long, it does link other all-weather roads from the north and south into the Peavine and High Prairie areas. The road will likely be completed this year.
Grant Lee, owner of GEM Grant Energy Maintenance, was very pleased when informed of the news March 29.
“That is just awesome,” says Lee, who operates an oilfield services and pipe-lining company. “It is an essential lifeline to keep this community moving forward.”
Lee adds High Prairie businesses already have a huge presence at Seal Lake and the road access will only improve the situation and economic opportunity.
“Realistically, it’s probably one of the biggest pieces of infrastructure to the area,” says Lee.
The Seal Lake district has just begun to be developed during the last decade. Lee says development of the Seal Lake area will occur over the next 20-30 years.
“The marathon is still on and we’re in it,” says Lee.
Dave Paddon, branch manager of Baron Oilfield Services, was also very pleased.
“It’s very good news for lots of companies in High Prairie.”
Paddon adds it will save his company 60 minutes of travel time on sales calls.
“It will be better for the whole town,” says Paddon, agreeing with Lee’s assessment.
The current road gets impassable during spring thaw forcing some companies to do business in Peace River, despite the fact they are very pleased with services in High Prairie.
“Instead of going to Falher or Peace River … in that aspect it’s great,” says Paddon.
Arrow’s news release says the project will benefit many. It says people of Peavine Metis Settlement and numerous communities surrounding the Settlement have seen this connector road as key to accessing the extensive resource development in the Seal Lake/Dawson Area. The company cites a recent stakeholder meeting at Peavine that was attended by approximately 50 individuals from local governments, the Alberta government and industry, as being very important.
“Arrow, in its partnership with its major shareholder, the members of Peavine Metis Settlement, has seen this road as being a critical component of our ongoing operations together,” says Arrow president and CEO, Chris Tesarski. “We have never wavered from our commitment to see that this road is built.”
Arrow’s oil pipeline on Peavine is currently operating at 25 per cent capacity and will directly benefit from oil being able to be transported to and processed at its pipeline battery.
Arrow adds it intends to add infrastructure to its current facility to handle significantly more volume from the oilfields directly north of Peavine that would be easily accessed from the connector road.
“Easier access, year-round, means more oil in Arrow’s pipeline system. We anticipate being able to easily handle double the production volumes once the facility and road work is completed,” says Tesarski.
“We are excited by the opportunities that this road can bring to all parties for safer, more efficient access and also the opportunities for economic benefit to our valued shareholders at Peavine, regional stakeholders and our operations at Arrow Energy,” he concludes.
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