US Oil Sands Inc. Announces Second Quarter Results
CALGARY, Aug. 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 June 30, 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 OPERATIONAL & FINANCIAL HIGHLIGHTS
Continued progression of the 5,930 acre oil sands development project,
including initiation of mine site clearing, water pumping installation,
ore optimization, and testing and development of detailed mine and
Supply of water and raw road-building materials for Uintah County's Seep
Ridge Road Paving Project, a state-funded project that will serve the
general public, ranchers, recreationalists, and the energy industry.
Revenues therefrom will partially offset future capital costs
associated with mine opening and water supply infrastructure;
Continuation of outreach efforts to Utah-based government officials,
business leaders, and communities; and
- Progressed PR Spring Project Joint Venture discussions with select parties.
"During the second quarter we were primarily focused on initiating site work as well as finalizing the engineering design of our PR Spring Project. We have also made good strides in our discussions with key parties engaged in our ongoing process of pursuing a JV financing agreement," said Cameron Todd, CEO of US Oil Sands. "From an operational perspective, we anticipate commercial start-up of the initial phase of our project to commence in late 2014 however this of course is dependent on the timing of our financing."
During the second quarter the Company continued to work with its engineering consultants and equipment suppliers to complete final engineering design. Mine planning activities continued to identify and plan expansion areas.
The Company also entered into an agreement to supply water and raw materials in Uintah County, Utah for a state-funded road building project. The 44 mile project will serve the general public, ranchers, recreationalists, and the energy industry. In relation thereto, the Company permitted and mobilized a man-camp to support field operations and acquired and installed pumping equipment to bring the production water well to operational status.
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 timeframe within which an appeal 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 is 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 a 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.
For the remainder of 2013, the Company will continue to focus on the final engineering and procurement of equipment for site preparation and construction of the PR Spring Project Area. Management anticipates fabrication of the process extraction plant to commence in 2013, with final fabrication, field assembly and commercial start-up expected to occur in 2014. The timing of these plans is to a large degree dependent on when the Company raises the capital necessary to undertake the major expenditures. With the assistance of external corporate finance support, US Oil Sands continues the process of marketing and closing a joint venture financing.
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 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, 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, 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.For further information:
US Oil Sands Inc.
Cameron Todd, CEO or Glen Snarr, President and CFO
Suite 950, 633 - 6th Avenue SW
Calgary, Alberta T2P 2Y5
Tel: +1 403 233 9366
Email: email@example.com Website: www.usoilsandsinc.com
300 5th Ave. SW, 10th Floor
Calgary, Alberta T2P 3C4
Tel: +1 403 218 2833