This business case will be used to develop technology roadmaps, influence industry and government research and technology development (R&D), including but not limited to such initiatives as pilot projects and university research chairs, and also serve as a basis for developing the Energy Innovation Network (EnergyINet) Program in Natural Gas and Conventional Oil Recovery (NGCOR).

Background
In late 2003, PTAC released a report for AERI in support of the development of the NGCOR EnergyINet Program, entitled "Spudding Innovation". One of the key recommendations of this report was the creation of a detailed business case for increased oil and gas recovery for the WCSB, through R&D, demonstration and commercialization. The specific Alberta goals identified were additional recoverable reserves of 5 billion barrels of conventional oil and 25 TCF of conventional natural gas by 2015 attributable to new R&D. In response to one of the recommendations within the Spudding Innovation report, the Alberta Department of Energy announced the $200 million Innovative Technologies Royalty Program (ITRP). PTAC, on behalf of the NGCOR EnergyINet Program, subsequently issued Request for Proposal (RFP) RR 2004-01 (http://www.ptac.org/res/resr0401.html) to initiate this project. The project is expected to meet all the requirements outlined in the RFP.

Project Deliverables:

1. Specific regions/areas/pools and the respective technology development(s) to increase recoverable reserves by 5 Bbbls and 25 Tcf in Alberta and additional reserves for British Columbia and Saskatchewan.
2. Business and technical basis for developing a technology 'roadmap' for each region/area/pool.
3. Near-term and long-term growth potential, and limited time windows of opportunity.
4. Historic trends in reserves development in WCSB and analogies (eg. GRI; Colorado (tight gas)) - leverage worldwide experience.
5. Accessible database of results and technology that can be used by industry to evaluate upside potential of any conventional resource.

1. Producers will learn where in their asset base that they might deploy both existing and new technology to significantly increase conventional oil and gas reserves and production.
2. Producers will gain access to templates, tools, and methodologies for evaluating the potential impact of existing and new technologies.
3. Producers will learn about the benefits of the Alberta Department of Energy's Innovative Technologies Royalty Program (www.gov.ab.ca/acn/200406/16558.html).
4. Government, industry, and R&D groups can focus on key technologies and resource types.

Project completion is targeted for November 30, 2004.

Project Technical Direction:
A PTAC working group comprised of industry and government representatives is providing technical direction to project performers. Funders have the option to provide one representative to participate on the working group.

To obtain technical information on the project, please contact Richard Baker of Epic Consulting Services at 213-4206 or email: richard@epiccs.com

The Energy Innovation Network (EnergyINet - http://www.aeri.ab.ca/sec/EIN/index.cfm) is an evolving vehicle for collaboration among industry, federal and provincial governments, research providers and not-for-profit groups to achieve a shared vision of an abundant supply of environmentally responsible energy, creating economic prosperity and social well being for Canadians.

DISCLAIMER:
PTAC is only a facilitator for this presentation. PTAC makes no representation regarding ownership or quality of any technology described by a presenter, or generally as to the contents of a presentation. PTAC does not endorse any presenter nor the technology presented. Please use your own judgment. PTAC trusts that each presenter will engage in fair trade practices, but does not police or otherwise enforce this policy in any manner.