Emerald Bay Energy Inc. (TSX VENTURE: EBY) said Nov. 25 that it and its partners have begun plans to expand the partnership’s electric generation project and associated fuel reserves near Nevis, Alberta.
The partnership has acquired certain producing oil and gas assets strategically located near the existing electric generation plant, which has been on-line for approximately one year. This acquisition provides immediate revenue from oil and gas production as well as fuel supply and sites for expanding the partnership’s electrical power generation capacity. The plan is to grow from the current 1 MW of electrical generation to approximately 6 MW in 2016 with further expansions thereafter.
“Recent comments reported in the Calgary Herald, whereby Alberta Premier Rachel Notley stated, ‘Coal is a high-carbon fuel that we currently depend on for more than half or our electricity in Alberta. In its place, we must encourage lower-carbon natural gas and renewables,’ clearly illustrate that timing couldn’t be better for projects like this in Alberta,” stated Shelby Beattie, President and CEO of Emerald Bay.
The project provides the framework for future electric generation projects whereby the corporation will be able to create revenue streams from natural gas wells that are currently uneconomical to produce. Emerald Bay said it will continue with the process of evaluating future locations for power generation and is confident that the deployment cycle of future projects will be significantly shorter.
Emerald Bay Energy, based in Calgary, is a junior oil and gas producer with production properties in Western Canada and South Texas.