Enhance Energy Completes Arrangements for the Financing and Construction of the Alberta Carbon Trunk Line

CALGARY, Sept. 14, 2018 /CNW/ - Enhance Energy Inc. ("Enhance" or the "Company") is pleased to announce the completion of all required arrangements related to the previously announced project development and coordination agreement and long-term service agreement for the construction and operation of the Alberta Carbon Trunk Line ("ACTL") with Wolf Carbon Solutions Inc.

Under the terms of the agreements, Wolf will construct, own and operate the CO₂ capture and pipeline transportation assets. Enhance will continue to be the owner and operator of the CO₂ utilization and sequestration portion of the ACTL project through its enhanced oil recovery ("EOR") operations. Construction activities related to the ACTL project are expected to commence in the next 60 days with first transportation and storage of CO₂ anticipated by the end of 2019.

Financial support was provided to Enhance by ATB Financial through associated debt facilities.   Dentons Canada LLP acted as legal advisors to Enhance for the transaction.

About the ACTL

The ACTL project is a carbon capture utilization and storage project that in its first phase will capture CO₂ from two sources in Alberta's Industrial Heartland and transport the CO₂ to existing mature oil fields located near Clive, Alberta, that will benefit from increased light oil recovery as CO₂ is permanently stored in the reservoir. At full capacity, the ACTL will be the largest project for utilizing and storing man made CO₂ in the world, and the equivalent of removing every car from Alberta's roads.  The ACTL demonstrates how Alberta can be a leader in emissions mitigation while at the same time supporting and encouraging vital new industries ranging from upgrading and refining through to Enhanced Oil Recovery.

About Enhance Energy

Enhance is a private oil and gas development company specializing in EOR and focused on using CO₂ for miscible flooding in the Clive field in central Alberta.  The Enhance leadership team has extensive experience in the oil and gas industry and the planning and implementation of similar, large-scale CO₂ EOR projects once traditional primary and secondary recovery techniques have been exhausted. Through its CO₂ EOR scheme, the Company is able to safely capture and permanently sequester CO₂ while increasing production and reserves recovery resulting in a new and significant low carbon source of fossil fuel production.

SOURCE Enhance Energy Inc.