The report, authored by Valkor subsidiary Crosstrails Engineering, set out to confirm the technical feasibility of a 10,000 barrel of oil per day (bopd) operation, and make first estimates of capital and operating costs.
According to TomCo, the report provides a high level of confidence in the project.
Crosstrails estimates that the total incremental cost of production – which includes mining, fuel, electricity, personnel and all expenses to take oil bearing ore from the earth to a commercial petroleum product – would likely be below US$30 per barrel.
It added that this figure can fall beneath US$25 per barrel in the next round of design, with the incorporation of heat recovery and various other process optimisations.
The report concludes that the plant could be built in a relatively short period of time, using conventional mining and oil processing equipment. It could achieve first production just over a year from the start of construction, it added.
Capital cost is estimated at US$185mln, for a 10,000 bopd plant.
TomCo noted that the report will now be used in the next steps, to produce Front-End Engineering and Design (FEED) documentation.
“We are delighted with the conclusions of the pre-FEED study, which indicates that the proposed commercial-scale oil sands plant has favourable economics, both in terms of plant construction costs and cost per barrel of oil produced,” John Potter, TomCo chief executive said in a statement.
“This coupled with the potentially modest time frame to construct a plant capable of producing ready for sale products means that we are very excited for the future of Greenfield. We look forward to progressing matters with our partners and announcing further updates in due course."
Greenfield LLC is a joint venture vehicle for partners TomCo and Valkor, which intend to adapt Petroteq's oil sands plant (POSP) at Asphalt Ridge. It is to use technology licensed from Quadrise International PLC.