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SHELL CANADA LIMITED INTRODUCES NEW TECHNOLOGY

 PEACE RIVER, Alberta, Nov. 25 /PRNewswire/ -- Shell Canada Limited took a step closer to unlocking the oil trapped in northern Alberta's oil sands today with the introduction of new technology at its Peace River facility.
 The company began the first application of a new technique that involves injecting steam into the earth to create a steam chamber beneath the surface, thereby allowing the thick, tar-like bitumen to flow down to a producing well.
 "This $11 million horizontal well project is the first application of a new process called Enhanced Steam Assisted Gravity Drainage (ESAGD)," says business process team leader John Howard. "The process relies on gravity to drain heated bitumen from the surface of an underground steam chamber into the two production wells, by first injecting steam into the cavity through the two injection wells."
 For the next two months, Shell will inject steam and anticipates oil production from the pair of wells sometime early next year. Production is expected to be about 150 cubic metres (1,000 barrels) a day from these wells.
 If the test is successful, Shell will consider applying the technology to begin a staged development of the rest of its Peace River area holdings. The company holds leases on 150,000 acres (60,700 hectares), containing an estimated 2.3 billion cubic metres (14 billion barrels) of bitumen.
 Shell first started producing bitumen commercially at its Peace River Complex, 500 kilometres northwest of Edmonton, in 1986. The complex produces approximately 1,600 cubic metres (10,000 barrels) of bitumen a day.
 -0- 11/25/93
 /CONTACT: Pat Chapman, Resources Public Affairs Manager of Shell Canada Limited, 403-691-2065/
 (SHC.)


CO: Shell Canada Limited ST: Alberta IN: OIL SU: PDT

LG -- NY004 -- 7863 11/25/93 15:42 EST
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Publication:PR Newswire
Date:Nov 25, 1993
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