CALGARY,
Nov. 12, 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 and nine month period ended September 30, 2013 along with the management's
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 OPERATIONAL & FINANCIAL
HIGHLIGHTS
- Closing of $81 million private
placement financing (the "Financing") subsequent to the end
of the quarter that fully funds Phase 1 of the PR Spring Project
and enables the Company to pursue corporate development activities
in other oil sands regions;
- Financing related activities including marketing, negotiation,
field reviews and due diligence;
- Initiated opening of the PR Spring Project site through supply
of road-building materials for the state-funded road building
project;
- Extended duration pump test of the deep aquifer confirming the
supply of project water for future expansion; and
- Immediate ramp-up of all professional and supplier activities
for the 5,930 acre PR Spring Project.
"The past several months were highlighted by the
closing of our $81 million financing
that not only funds the initial commercial phase of our PR Spring
Project, but also enables us to explore future partnerships and
global growth opportunities for our best-in-class environmental
approach to oil sands development," said Cameron Todd, CEO of US Oil Sands. "In the
near-term we will continue to focus on project management of the PR
Spring Project and finalize its scheduling and capital budgeting.
The financing was the last major hurdle to overcome and we are now
able to proceed on a fully funded basis."
OPERATIONAL HIGHLIGHTS
During the third quarter ("Q3 2013") the Company
continued to work with its engineering consultants and equipment
suppliers to enable initiation of project work on Phase 1 of the PR
Spring Project. Project consulting contracts have been awarded to
FLSmidth and Norwest Corporation. The Company's detailed mine
planning facilitated the identification and planning of future
expansion areas within the PR Spring leased acreage area.
Work on the PR Spring Project site was initiated
through an agreement to supply water and raw road-building
materials in for a state-funded road building project. US Oil Sands
permitted and mobilized a man-camp to support field
operations. The provision of road building materials enabled
the Company to conduct initial mine opening activities during the
quarter and at minimal cost to the Company. Crushed aggregate to
supply the road was obtained from areas within the Company's
planned mine pit. This allowed the Company to initiate mine
opening earlier and reduce future mining costs while eliminating
surface disturbance from a separate gravel supply pit.
Pumping equipment was installed to bring the production water well
to operational status. In supplying water for the road
project, US Oil Sands was also able to concurrently execute an
extended duration pump test of the deep aquifer. This three month
test exceeded previous ground water model predictions and confirmed
the supply capability of project water supply for future
expansion. This water installation will now be used as a key
part of the Phase 1 mining and extraction project.
Subsequent to the end of Q3 2013, the Company
closed its previously announced $81
million private equity financing, issuing 540,036,331 Common
Shares at a price of $0.15 per Common
Share. All Common Shares issued pursuant to the Financing are
subject to a statutory hold period of four months from the date of
closing. Following completion of the Financing, the Company
has a total of 852,892,395 Common Shares outstanding on a
non-diluted basis. The Company intends to use proceeds from the
Financing to complete the first phase of the commercial development
of the PR Spring Project and to accelerate future production
phases. Proceeds raised in excess of those required to fund
the PR Spring Project will allow the Company to initiate corporate
development activities that may include the acquisition of or
participation in other oil sands assets.
In connection with the Financing, Serafino Iacono, Ronald
Pantin, Stephen Lehner, and
Alfred Holcomb were appointed to the
Company's Board of Directors.
The Company also announced that pursuant to the
Company's stock option plan, a total of 29,900,000 stock options
were granted to Directors, Officers, Employees and Consultants of
the Company at an exercise price of $0.19 per share expiring November 12, 2018, subject to regulatory
approval.
OUTLOOK
With financing complete, the Company is now able
to dedicate its efforts to bringing Phase 1 of the PR Spring
Project to commercial status. For the remainder of 2013, the
Company will continue to focus on the engineering and mine design,
procurement of long-lead items, and general site preparation and
construction related to Phase 1 of the PR Spring Project.
Management anticipates that the off-site fabrication of the process
extraction plant will be substantially complete in 2014, with field
assembly to occur in 2015 followed by commercial start-up and
bitumen production.
Management intends to continue its pursuit of
opportunities to add additional resource lands by assessing growth
opportunities and furthering regulatory application efforts that
ensure a ready inventory of future mineable assets for the
Company.
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 2015.
The foregoing information contains
forward-looking information relating to the future performance of
the Company including information relating to the use of proceeds
of the Financing, the development and construction of the PR Spring
Project, commencement of commercial production and corporate
development activities. 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.
Discovered bitumen resources or discovered
bitumen initially-in-place is that quantity of bitumen that is
estimated, as of a given date, to be contained in known
accumulations on Company lands prior to production. There is no
certainty that it will be commercially viable to produce any
portion of the resources. Additional information relating to
resource estimates is contained in the Company's Statement of
Resources Data and Other Oil and Gas Information for the year ended
December 31, 2012 dated April 29, 2013 and available on SEDAR at
www.sedar.com.
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.