CALGARY,
May 15, 2013 /CNW/ - US Oil Sands
Inc. ("US Oil Sands" or the "Company") (TSXV: USO), a
company focused on oil sands exploration and production in
Utah, today announced that it has
filed its unaudited interim financial statements ("Interim
Report") for the three month period ended March 31, 2013 ("Q1 2013") along with the
management discussion and analysis ("MD&A") of the
financial results of US Oil Sands for such period.
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 as well as US Oil Sands'
website at www.usoilsandsinc.com.
SELECTED FIRST QUARTER OPERATIONAL &
FINANCIAL HIGHLIGHTS
- Received favourable ruling from the Board of Directors of the
Utah Division of Oil, Gas and
Mining ("DOGM") upholding previously issued permits for the
Company's PR Spring Project Area;
- Continued progression of the 5,930 acre PR Spring Project Area,
including final engineering design planning and pilot plant
operations optimization; and
- Completed and filed independent resource evaluation report that
assessed the bitumen resource of the Company's PR Spring property
at 184 million barrels of best estimate discovered resource.
"Our first quarter was focused on steadily
progressing our PR Spring Project Area, on which we are currently
working through optimization of engineering and mine design" said
Cameron Todd, CEO of US Oil Sands.
"From a regulatory standpoint, our previously approved mining
permit has received favorable legal rulings, with Utah's Department of Oil, Gas and Mining
continuing to recognize our mining permit and best-in-class
environmental practices. Operationally, we remain on track for
commercial start-up in 2014 and continue to highly prioritize the
process of marketing and closing a Joint Venture financing."
OPERATIONAL HIGHLIGHTS
During the first quarter of 2013 the Company
continued to work with its engineering consultants and equipment
suppliers to optimize engineering design on the PR Spring Project.
Additionally, the Company continued to work on future mine planning
activities with the assistance of its third party mine engineering
consultants.
Subsequent to the end of quarter, and in
compliance with National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities, the Company released the
independent resource evaluation report issued by Calgary-based Sproule Unconventional Limited
("Sproule") dated April 29,
2013. The evaluation results detail the bitumen resource
assessment of the Company's PR Spring property in Utah as of February 28,
2013, and incorporate the results of the 184 wells drilled
and cored on the Company's PR Spring Project Area in 2011 and 2012.
Sproule's independent best estimate of discovered resource is 184
million barrels.
REGULATORY HIGHLIGHTS
On January 14,
2013, the Board of Directors of the Utah Division of Oil,
Gas and Mining ("DOGM") voted to support DOGM's previous
approval of the Company's Notice of Intention to Commence Large
Mining Operations at its PR Spring Project Area. The hearing was
initiated through a Request for Agency Action filed by a
Utah-based environmental
organization in September 2010
against DOGM, claiming that DOGM improperly issued the Company's
Notice of Intention to Commence Large Mining Operations. The
decision was published February 27,
2013 by the chairman of the board of DOGM. The timeframe
within which an appeal by the Utah-based environmental organization can be
made has expired, and accordingly, DOGM's issuance of the Company's
Notice of Intention to Commence Large Mining Operations at its PR
Spring Project Area stands as final and fully in-force.
As of the date hereof, the November 1, 2012 decision by the Utah Department of Environmental Quality's
Water Quality Board to support the Company's permit-by-rule as
previously issued by the Division of Water Quality on March 4, 2008 is in appeal to the Utah Supreme
Court by the Utah-based
environmental organization. Appeals cannot introduce new evidence
and are heard only on the basis of technicalities of law.
There are no other challenges or appeals against
the Company or the regulatory agencies on any regulatory permits
held by the Company in respect of its planned operations for the PR
Spring Project Area.
OUTLOOK
For the remainder of 2013, the Company will
continue to focus on the final engineering design and procurement
of equipment, as it continues to progress site preparation and
construction of the PR Spring Project Area. The Company
anticipates that the majority of the fabrication of the process
extraction plant will be completed in 2013, with final field
assembly to occur in 2014. Following this, the PR Spring Project
will be ready for commercial start-up. The timing of these
plans is dependent on when the Company raises the capital necessary
to undertake the major expenditures. In keeping with this,
Management has enlisted the assistance of external corporate
finance support in order to continue the process of marketing and
closing a joint venture financing.
Management has also initiated the process of
preliminary mine planning and permitting activities intended for
future production areas within the broader PR Spring Project Area.
In addition to this, US Oil Sands intends to continue its long term
strategic goal of acquiring the rights to additional resource lands
by assessing relevant growth opportunities that exist outside its
immediate area of operation. This is to ensure that the Company has
a ready inventory of future mineable assets and prospects through
which it can continue to grow its business over the long-term.
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.