An American company says it is planning to build a 40-thousand-barrel a day oil refinery in Stoughton.

The community of nearly 700 sits at the crossroads of highways 13, 33, and 47, about 60 Kms east of Weyburn.

Stoughton is a already a major staging point for the shipment of crude oil, which is transported by rail tankers.

Quantum Energy says it has created a Canadian subsidiary to take on the refinery project.

That company, Dominion Energy Processing Group, has already had some preliminary discussions with officials in Saskatchewan.

According to Quantum's website, Stoughton would be among five locations for refineries in the Bakken oilfield.

The other four would be in the United States.

Click here to view Quantum Energy's full news release.