Refinery developer eyeing Bakken adds Canadian site

By Luke Geiver | December 07, 2016

Quantum Energy Inc., a diversified energy development company attempting to build multiple refineries within the Bakken shale play, has closed on a land contract for a refinery site near Stoughton, Saskatchewan, Canada. Stoughton is roughly 55 miles north of Noonan, North Dakota. A week after forming a Canadian subsidiary with Dominion Energy, Quantum was able to secure land for a 40,000 barrels per day refinery that would utilize crude sourced from the Bakken and Three Forks formation.

The proposed facility will be located in the Viewfield production region and near a Crescent Point Energy gas capturing plant. According to Dominion Energy Processing Group, the entity formed by Quantum to led the construction and design of the facility, the plant will produce roughly 21,500 bpd of retail gasoline and 13,600 bpd of ultra-low sulfur diesel.

In late November, Quantum received a two-year audit allowing the company to file and list with the U.S. Securities and Exchange Commission. “Quantum looks forward to becoming a fully reporting company and up-listing accordingly,” said Stan Wilson, chairman and CEO. “This is a significant corporate event and a major landmark for the company. The opportunity to raise new capital that an S1 filing presents should help spur our refinery development and E&P efforts,” he added.

In North Dakota, Quantum is working to develop multiple refinery sites, including a facility located within the Fort Berthold Indian Reservation.

To led the Stoughton project, DEPG will bring in Keith Stemler, a veteran of Western Canada’s natural resource sector. Stemler previously worked on multi-billion dollar projects with ExxonMobil, Husky Energy and Suncor.

According to Stemler, who has worked with Quantum previously in an advisory role, the Stoughton project has received overwhelming support from local and provincial governments. The cost or estimated construction start date for the project has not yet been released.