US Oil Sands Inc. Announces Second Quarter Results and Provides Operational Update
09 Août 2012 - 4:02AM
PR Newswire (Canada)
CALGARY, Aug. 9, 2012 /CNW/ - US Oil Sands Inc. ("US Oil Sands" or
the "Company") , 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 six month
period ended June 30, 2012 ("Q2 2012") 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
SECOND QUARTER OPERATIONAL & FINANCIAL HIGHLIGHTS: -- Closed
$11 million private placement brokered financing for net proceeds
of $10.2 million; -- Initiated 2012 field work program including: o
Mobilization of remote man-camp and related facilities o Mine
equipment testing program o Water supply testing program o Core
hole drilling program o Initial site preparation for PR Spring
Commercial Project; -- Contracted global mining equipment supplier
FLSmidth as EPC contractor to complete integrated engineering
design for construction of PR Spring Commercial Project; and --
Engaged Dundee Securities Ltd. to initiate the process of marketing
a Joint Venture financing. "Our second quarter was characterized by
the steady operational progression of our PR Spring Project field
work program," said Cameron Todd, CEO of US Oil Sands. "We continue
to remain on track with regard to achieving commercial production
startup in late 2013. Over the balance of the year we intend to
finalize detailed engineering design of the PR Spring Project,
order long-delivery equipment and initiate construction of modular
process skid packages. During this quarter, we have also begun the
process of sourcing a joint venture partner, so as to ensure that
we have the funding necessary to further develop our high-quality,
Utah asset base." SECOND QUARTER HIGHLIGHTS Operational highlights
during the second quarter revolved around the Company's 2012 PR
Spring Project field work program. This included performing the
geological and geophysical assessments needed to source optimal
water well locations for the Project's future processing
facilities; finalizing commercial process engineering plans and
design with engineering consultants and equipment suppliers; and
gathering and evaluating geological data in anticipation of a Q3
coring program that is intended to better assess the broader PR
Spring Area and fulfill requirements needed to pursue future mine
permitting areas. From a financial standpoint, the Company
completed a private placement and issued 61,224,735 units at a
price of $0.18 per unit for gross proceeds of $11,020,452. Each
unit consists of one Share and one Warrant exercisable at a price
of $0.26 per share expiring May 23, 2014. The principal purpose of
the net proceeds was to fund the development of the Utah-based PR
Spring Commercial Project and for working capital purposes.
Additionally, as announced on August 29, 2011 and having just
recently received required approvals from the TSX Venture Exchange
(the "TSXV"), the Company has issued the third tranche of 500,000
warrants to EAS Advisors LLC ("EAS"). The warrants were issued with
respect to services provided by EAS for the period of January 1,
2012 to March 31, 2012. Each warrant entitles the holder thereof to
acquire a common share of US Oil Sands at a price of $0.50 per
common share with an expiry date of June 30, 2013. On August 8,
2012, the Company received the required TSXV approval to issue the
fourth and final tranche of warrants to EAS for their services
provided to the Company from April 1, 2012 to June 30, 2012. These
warrants will be issued immediately and will entitle the holder
thereof to acquire a common share of US Oil Sands at a price of
$0.50 per common share with an expiry date of June 30, 2013.
OUTLOOK For the remainder of 2012, US Oil Sands intends to complete
its second full field work program. This program includes core hole
drilling, logging and assaying on future mine areas, development of
process water supplies, site preparation for the PR Spring
Commercial Project (Phase 1) and performing additional tests on
surface mining equipment. Initial construction of the Company's PR
Spring Project began in Q2 2012, and long lead time major equipment
is expected to be ordered in Q3 2012. The majority of the project's
construction will take place in early 2013 and the project remains
on schedule for commercial production start-up of the initial 2,000
bpd phase in late 2013. With the information gained from the 2011
field work program, where the Company drilled a 147 core-hole
program on its PR Spring Development Area, the Company's
Independent Reserve Auditor (Sproule US Limited) confirmed, as of
February 29, 2012, the presence of 189.8 million barrels of
discovered bitumen resource on the PR Spring block. Management is
preparing plans for the development of these resources through a
multi-phased expansion of the first 2,000 bpd project, raising
capacity on the block to 20,000 bpd by the end of 2017. Management
intends to pursue additional opportunities both through exploration
and acquisition of additional resource lands in order to achieve
the Company's strategic target of 50,000 bpd capacity by 2020.
Management intends to accomplish this by continuously assessing
growth opportunities and furthering regulatory application efforts
on existing properties, so as to 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 2013. 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, resource estimates, target production levels and joint
venture financing arrangements. 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, 2011 dated
March 27, 2012 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.
US Oil Sands Inc. CONTACT: US Oil Sands Inc.Cameron Todd, CEO or
Glen Snarr, President and CFOSuite 950, 633 - 6th Avenue SWCalgary
Alberta Canada T2P 2Y5Tel: +1 403 233 9366Email:
info@usoilsandsinc.com Website: www.usoilsandsinc.com Investor
RelationsJeremy Dietz300 5th Ave. SW, 10th FloorCalgary, Alberta
T2P 3C4Tel: +1 403 218 2833jdietz@equicomgroup.com
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