ASEC’s initial operations will take place at Sunnyside Lease area where it has the rights to mine oil sand ore and extract bitumen from approximately 1,800 acres of private property. Located near Price, Utah, the Sunnyside area contains some of the prime oil sands deposits in Utah. ASEC controls an estimated resource of approximately 150 million barrels (net P50) of recoverable bitumen, according to a Resource Audit and Classification prepared by Marston (a Golder Associates Company). The planned plant and mine site is approximately seven miles from an existing power plant, rail head, and major state highway. The site is accessible by County road and will be served by existing power lines. In March of 2014, ASEC filed its application for an operating permit with the Utah Department of Oil, Gas and Mining. Initial production from the Sunnyside location is planned at 5,000 barrels per day which the Company hopes to have online by the summer of 2016.
The Resource Audit and Classification was completed in accordance with the Provisions of the NI 51-101 Guidelines and the Canadian Oil and Gas Evaluation (COGE) Handbook (the latter prepared jointly by the Canadian Institute of Mining, Metallurgy and Petroleum Society and the Society of Petroleum Evaluation Engineers).