A method of producing bitumen from a subterranean tar sand formation characterized by the following muti-step process. First, a continuous wellbore having a second section thereof contained within the formation and a first and a third section extending said second section to the earth's surface is formed. Next, a perforated liner is inserted into the wellbore extending the entire length thereof and having perforations so positioned thereon to be adjacent the second section of the wellbore. Thereafter, a heated fluid is circulated through the wellbore, contacting the formation via the perforations, thereby reducing the viscosity of the bitumen contained therein rendering it mobile. Subsequently, the mobilized bitumen is recovered via the wellbore.