The Lloydminster region of both Saskatchewan and Alberta produces mainly heavy oil in the 12^o to 16^o API gravity range from various Cretaceous and Mannville formation sandstones.  Oil production comes mainly from the Colony, Upper McLaren, Sparky, General Petroleum and Waseca formations of the Mannville Group. These formations are encountered at drill depths of 600 to 700 meters.

The Lloydminster region of Saskatchewan consists of several different areas including Silverdale, Lashburn, Epping, Forest Bank and Freemont and the Lloydminster region of Alberta consists of several different areas including Lloydminster, Meridian and Kitscoty, all of which are described in each project area.

Emerge typically transports oil by tanker truck to be processed or treated at one of the Corporation’s operated battery facilities. Clean oil is then typically transported again by tanker truck to various points of sale.

Emerge will focus a significant portion of the 2011 program to this area with the aim of growing production and reserves within the Heavy Oil district.  Historically, the drilling costs are relatively low in the Greater Lloydminster region with drilling and casing costing approximately $300,000 and completing and equipping costing approximately $240,000 per well. Work-over costs are also relatively low with historical costs of approximately $30,000 to $60,000 per well.