Devon Energy ( DVN ) today announced that it has successfully obtained regulatory approval from the Alberta Energy Resources Conservation Board and the Alberta Environment and Water to proceed with the construction of the third phase of its Jackfish Oil Sands Project near Conklin, Alberta in Canada.
The company expects to deploy $1.3 billion of capital on Jackfish 3, which represents an estimated 300 million barrels of gross recoverable oil, through startup.
Along with the Pike oil sands assets it has acquired from BP ( BP ), DVN anticipates that the Jackfish projects will increase its net thermal oil production from the current 44,000 barrels per day to between 150,000 and 175,000 barrels per day by 2020, representing a 17% to 19% compound annual growth rate.
DVN shares are up 3% to $67.33.
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