CALGARY,
Jan. 20, 2014 /CNW/ - US Oil Sands
Inc. ("US Oil Sands" or the "Company") (TSXV: USO), a
company focused on oil sands exploration and production in
Utah, is pleased to announce that
it has selected Kellogg Brown & Root LLC ("KBR") to
provide project and construction management services for the
Company's PR Spring Project. Working jointly with US Oil
Sands, KBR will work to bring both the extraction facilities and
mine development into commercial production.
"Having KBR's Salt
Lake City team supporting our project adds tremendous reach
to our current pool of expertise," said Cameron Todd, CEO of US Oil Sands. "We will be
able to draw on KBR's significant oil sands, mining, equipment
module and plant construction experience to ensure that budgets and
timelines are tightly controlled and that the project is delivered
in accordance with our shareholder's expectations. We remain
100% committed to making this flagship oil sands project one that
the State of Utah will be proud
of, especially as it relates to environmental leadership,
sustainable energy development, and beneficial economic
contribution for the citizens of Utah."
Having closed an $81
million financing in October
2013, the Company's PR Spring Project is fully funded
thereby allowing the Company to focus its immediate attention on
project execution. In addition to aligning itself with one of the
world's most respected engineering firms to steward the project
through to commercial commissioning and start-up, the Company has
also been active in building out its internal capabilities.
The Company will also seek to leverage the technical expertise of
its directors, including Ronald
Pantin of Pacific Rubiales Energy Corp. (TSX: PRE; BVC:
PREC; BOVESPA: PREB) and Rod Lewis
of Lewis Energy who sit on the Company's Technical Committee.
US Oil Sands has recently opened an office in
Salt Lake City from which process
engineering, mine engineering, health safety and environment, and
regulatory/government affairs will be conducted.
KBR is currently working closely with FLSmidth,
one of the Company's key process design and equipment
suppliers. With the detailed engineering stage underway and
the placement of long lead equipment orders imminent, both KBR and
FLSmidth will work to ensure attainment of the Company's mandate of
best-in-class business and operating performance, and environmental
outcomes. While significantly reducing capital cost, US Oil
Sands' innovative approach to oil sands development uses a
non-toxic bio-solvent that eliminates the need for tailings ponds
and facilitates concurrent and rapid mine reclamation. During
this process, the Company believes its full scale production plant
will achieve an industry leading 95% water-recycle ratio and a 96%
oil extraction rate.
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 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.