HOUSTON, Sept 16 Devon Energy Corp (DVN.N) said on Thursday that its board approved the development of a $1.2 billion oil sands project, the third of its kind, at the company's Jackfish prospect in Alberta, Canada.
Pending regulatory approvals, Devon said it expects to begin facilities construction at Jackfish 3 near the end of 2011, with plant start-up targeted for 2015.
Once operational, Jackfish 3 is expected to produce an average of 35,000 barrels of oil per day before royalties, the Oklahoma City, Oklahoma company said.
All three phases of Devon's Jackfish project use steam-assisted gravity drainage. That technology involves pumping steam into the ground to loosen up the tar-like bitumen so it can be pumped to surface wells.
Shares of Devon edged 6 cents lower to $62.07 in late trading on the New York Stock Exchange. (Reporting by Anna Driver. Editing by Robert MacMillan)
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