CALGARY,
April 29, 2013 /CNW/ - US Oil Sands
Inc. ("US Oil Sands" or the "Company") (TSXV: USO),
today announced the filing of its 2012 independent resource
evaluation report. The Company engaged Calgary-based Sproule Unconventional Limited
("Sproule") to complete an independent resource evaluation report
dated March 29, 2013 (the "Sproule
Report") in compliance with National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities. The
evaluation results detail the bitumen resource assessment of the
Company's PR Spring property in Utah as of February 28,
2013, and incorporates the results of the 184 wells drilled
and cored on the Company's PR Spring development block in 2011 and
2012. Sproule's independent best estimate of discovered resource is
184.3 million barrels.
"Based on the Sproule Report and the positive
results provided by our exploratory drilling program, we are able
to credibly showcase the potential our Utah properties hold for the company and
demonstrate that we are one step closer to execution of the first
phase of development of PR Spring. Our 2012 infill drilling in
prospective future pit areas confirmed initial indications and
detailed pit planning is now underway in these locations" said
Cameron Todd, CEO of US Oil Sands.
"The PR Spring Lease is a one of a kind asset that allows us to
offer investors unique exposure to one of the largest oil sands
holdings in the United States. We
are continuing to progress on the first phase of the PR Spring
Project and have now initiated work on design of potential future
phases."
US Oil Sands' PR Spring property lies within the
State of Utah's PR Spring Special
Tar Sand Area (STSA) and consists of four leases that encompass
5,930 acres. The Company also holds leases on an additional
26,075 acres that have not been evaluated in the Sproule
Report. US Oil Sands currently holds 100% working interest in
its Utah-based assets.
Sproule's resource assessment of the evaluated
areas is listed below:
DISCOVERED
PETROLEUM (BITUMEN) INITIALLY-IN-PLACE(1), P.R. SPRING
LEASE, UTAH
AS OF February 28, 2013 |
Development Area |
Area (acres) |
Best
Estimate(2) (MMbbl) |
Permitted Mine Plan Area(3):
North Pit
West Pit
Sub-total
Mine Plan Area yet to be permitted (4):
South Pit
Proposed and Permitted Mine Plan Area Sub-Total
Area without formally submitted Mine Plans(5) |
61.8
30.5
92.2
66.7
159.0
5,771.0 |
4.5
2.3
6.8
2.7
9.5
174.8 |
TOTAL LEASE |
5,930.0 |
184.3 |
Notes:
(1) |
Discovered petroleum
initially-in-place (equivalent to discovered resources) is that
quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations on Company lands prior to
production. The petroleum type for this property is crude
bitumen. |
(2) |
These are the gross best estimate
total bitumen resources in place within the lease and/or proposed
and permitted mine area on the Company-interest lands, without
regard for working interests, royalties or other encumbrances. |
(3) |
The Company is proceeding with
development of the permitted north pit and anticipates that
production will begin in Q3, 2014. Mining of the west pit is
scheduled for Q1, 2017. |
(4) |
High-density (2.5-acre spacing)
drilling has been completed for this area and detailed mine
planning is currently being undertaken by Norwest Corporation;
however, an application has not yet been made for a revision to the
Company's existing mining permits to include this area; as such,
there is no certainty at this time that this area will be
developed. |
(5) |
This area has been defined on an
exploratory 40-acre spacing, with some ~10-acre infill coring in
proposed future pit areas. The ~10-acre spacing used is
appropriate for initial pit delineation and estimation of
recoverable ore volumes. High-density pre-production drilling
and detailed mine plans have not yet been developed for this area
and as such, there is no certainty at this time that this area will
be developed; if developed, there is no certainty that it will be
commercially viable to produce any portion of these resources. |
The in-place volumes within the current mine
plan areas have been classified as discovered resources, based on
core hole data, assays, test pit results, outcrop data and
geological mapping. Although it is not possible to identify either
the exploitable portion of the discovered resources or the
recoverable portion of those resources until the final mine plan is
incorporated into the geological model, Sproule is confident that
contingent resources will be assigned to the three proposed and
permitted mine pits once this has been done. In 2011, the Company
identified four additional prospective mine pit areas that were
further delineated with infill coring in 2012 and are currently
undergoing design configuration and recoverable resource
quantification. Since that work is expected to closely follow this
assessment, Sproule believes the most specific classification, as
of the effective date of the report, is discovered resources.
Discovered resources were also estimated for the
balance of the property, using information gathered from
exploration core holes drilled on a nominal 40-acre spacing,
supplemented by historical core assays, outcrop data and geological
mapping. Although the current geological data garnered from 2012
infill coring clearly supports the expectation that the Company's
proposed additional mine pits (numbers 3 through 7) will be fully
designed and permitted, it is Sproule's opinion that recoverable
volumes cannot be assigned until future mine plans have been
defined to the same degree as the current mine plan area in order
to confirm the exploitable portion of the resource. In addition,
the ongoing economic evaluation of the currently proposed mine pits
will assist greatly in the further classification of these
resources. Thus, Sproule believes that contingent resources will be
assigned to a portion of the area once the additional information
is available and, as a result, it is Sproule's opinion that the
most specific classification, as of the effective date of this
report, is discovered resources.
Until a forthcoming economic evaluation is
completed, there is no certainty that it will be commercially
viable to produce any portion of these resources.
ANNUAL AND SPECIAL MEETING OF
SHAREHOLDERS
The Annual and Special Meeting of the common
shareholders of US Oil Sands Inc. will be held at the Calgary
Petroleum Club, 319 - 5th Avenue SW, Calgary, AB on Wednesday, May 15, 2013 at 10:00 AM MDT. The Company both filed its Notice
of Meeting and mailed the management information circular, form of
proxy and notice on April 17,
2013.
A copy of the aforementioned documents may be
found for viewing on the System for Electronic Document Analysis
and Retrieval website at www.sedar.com.
WEBSITE
US Oil Sands is pleased to announce the launch
of its new website at www.usoilsandsinc.com. The purpose of the
website is to provide investors and stakeholders with an
easy-to-navigate, robust source of information regarding the
Company and its unique approach to oil sands extraction.
ABOUT US OIL SANDS LTD.
US Oil Sands is engaged in the exploration and
development of oil sands properties and, through its wholly owned
United States subsidiary US Oil
Sands (Utah) Inc., has a 100%
interest in bitumen leases covering 32,005 acres of land in
Utah's Uinta basin. The Company
plans to develop its oil sands properties using its proprietary
extraction process which uses a bio-solvent to extract bitumen from
oil sands without the need for tailings ponds. The Company is in
the pre-production stage, anticipating the commencement of bitumen
production and sales in 2014.
The foregoing information contains
forward-looking information relating to the future performance of
the Company including information relating to the development and
construction of the PR Spring Project, mine planning, commencement
of commercial production, and resource estimates. Forward looking
information is subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to
differ materially from those anticipated in our forward looking
statements. Such risks and other factors include, among others, the
actual results of exploration activities, changes in world
commodity markets or equity markets, the risks of the petroleum
industry including, without limitation, those associated with the
environment, delays in obtaining governmental approvals, permits or
financing or in the completion of development or construction
activities, title disputes, change in government and changes to
regulations affecting the oil and gas industry, and other risks and
uncertainties detailed from time to time in the Company's filings
with the Canadian securities administrators (available at
www.SEDAR.com). Forward-looking statements are made based on
various assumptions and on management's beliefs, estimates and
opinions on the date the statements are made. Should one or more of
these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those described in the forward-looking information contained
herein. The Company undertakes no obligation to update
forward-looking statements if these assumptions, beliefs, estimates
and opinions or other circumstances should change, except as
required by applicable law.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE US Oil Sands Inc.