BP and Value Creation formed a partnership in March to explore and develop the area in the Athabasca region of Alberta, the London-based company said today in a statement.

BP agreed to pay $900 million for a 75% interest in the project, Bloomberg reported.

“Terre de Grace is a high-quality resource,” Fergus MacLeod, BP’s head of investor relations, told investors today on a conference call. “It’s a material asset.”

BP will be the operator of Terre de Grace, a 185,000-acre stretch of land about 300 miles (500 kilometres) north of Calgary, according to Value Creation.

The partners expect the field to start producing oil in 2011 and say it may yield more than 300,000 barrels per day.

Source: Upstream

More News:

• Shale gas could add 270,000 jobs by 2015
• Magnum Hunter, Stone Energy form Marcellus Shale joint agreements in West Virginia
• Rosetta to invest $590MM to expand activities in the Eagle Ford shale
• Enterprise spuds Bakken/Three Forks well in Montana
• Direct Energy takes bite of Carrot
• GOP locks Keystone into tax cut bill
• TransCanada: State of Nebraska to play major role in defining new Keystone XL pipeline route
• Petro One discovers oil at J1 Rosebank
• Shale deals drive US M&A activity -- up 135% in third quarter
• Total Canada's Joslyn project in Alberta

• More...