Osum Oil Sands Corp Announces $275 Million Financing



    CALGARY, Aug. 27 /CNW/ - Osum Oil Sands Corp ("Osum"), a privately-held
company focused on bitumen extraction, today announced that it has closed a
private equity financing for a total of CDN$275 million at a price of
CDN$10.50 per share. The financing was led by Warburg Pincus LLC ("Warburg
Pincus") and included a substantial investment by Blackstone Capital Partners
V LP ("Blackstone").
    Osum is currently the only junior player with a material position in the
thermal trend of the Cold Lake oil sands region of Canada, where a substantial
majority of the country's current "in situ" bitumen is produced. Producers
operating in the area include Imperial Oil, Canadian Natural Resources, Shell
and Husky. Osum plans to file its commercial application at Cold Lake in late
2009, with first production anticipated in 2013.
    Osum's Chairman and CEO, Richard Todd, said, "The closing of this most
recent financing is a positive endorsement of our quality asset base and
management team. The caliber of private equity firms committed to this
financing suggests a solid base of access to capital going forward for our
company. These funds provide the opportunity for Osum to confidently move
forward to first commercial production from our Cold Lake bitumen project of
approximately 35,000 barrels per day, and to pilot production at our much
larger Saleski project in the Wabasca region of Alberta., where our
significant land position holds the potential to produce in excess of
150,000 barrels per day from several projects."
    Mr. Todd continued, "The Saleski carbonates are thought by many to be one
of the world's next giant oil plays, and we are well-positioned to capitalize
on this opportunity to unlock a significant bitumen resource in Alberta. We
expect an application will be filed for large-scale commercial development at
one of our Saleski projects shortly after receipt of our first pilot results,
which are expected in early 2010. In short, the financing we have received
strengthens our momentum going forward, and we look forward to taking
advantage of multiple opportunities ahead of us."
    The company also reported that, as part of its new financing, it is
adding Jeffrey Harris and David Krieger, both Managing Directors of Warburg
Pincus, and David Foley, Senior Managing Director of Blackstone to its Board
of Directors. Two of the company's existing Directors, Simon Clark and Gerry
Stephenson, have agreed to step down from the Board of Directors and will join
Osum's newly formed Board of Advisors.
    Jeffrey Harris stated, "On behalf of Warburg Pincus, we are thrilled to
partner with Richard Todd and Osum's highly experienced management team to
help build the company into one of the premier oil sands operators in Canada.
Osum presents a unique opportunity to participate in one of the few remaining
independent oil sands plays of substantial scale in the primary fairway in
Canada."
    David Foley, from Blackstone added, "We are pleased to have the
opportunity to play an active role in funding the continued growth of a
company with such significant recoverable resources and as experienced a
management team as Osum's."

    About Osum:

    Osum Oil Sands Corp. is a privately held Alberta based company with
approximately 11 billion barrels of bitumen in place net to Osum, focused on
the application of in situ recovery technologies to bitumen extraction. Osum's
mission is to provide secure, safe energy to North Americans through
innovative and environmentally responsible business practice. For more
information, please visit www.osumcorp.com.

    About Warburg Pincus:

    Warburg Pincus has been a leading private equity investor since 1971. The
firm currently has more than $35 billion of assets under management. Over the
past 20 years, Warburg Pincus has invested more than $3.4 billion in more than
30 companies in the energy-sector worldwide. The firm has been the lead
investor in numerous successful public and private oil and gas exploration and
production companies, including: Newfield Exploration Co., Spinnaker
Exploration, Inc. (since acquired by Norsk Hydro ASA), Encore Acquisition
Company, Bill Barrett Corp., MEG Energy Corp., Antero Resources Corp., and
Canbriam Energy. Warburg Pincus has an active portfolio of more than 125
portfolio companies, and has offices in Beijing, Frankfurt, Hong Kong, London,
Mumbai, New York, San Francisco, Shanghai and Tokyo. For more information,
please visit www.warburgpincus.com.

    About Blackstone:

    Blackstone is one of the world's leading investment and advisory firms
with total assets under management of approximately $119 billion and a long
and distinguished track record of investing in the energy sector. Blackstone
seeks to create positive economic impact and long-term value for its
investors, the companies it invests in, the companies it advises and the
broader global economy. Blackstone's alternative asset management businesses
include the management of corporate private equity funds, real estate funds,
hedge funds, funds of funds, debt funds, collateralized loan obligation
vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also
provides various financial advisory services, including mergers and
acquisitions advisory, restructuring and reorganization advisory and fund
placement service. Further information is available at www.blackstone.com.

    Cautionary Information and Forward Looking Statements

    Certain statements contained in this press release, including the
documents incorporated by reference, may contain projections and
"forward-looking statements" within the meaning of that phrase under Canadian
and U.S. securities laws. When used in this document, the words "may",
"would", "could", "will", "intend", "plan", "anticipate", "believe",
"estimate", "expect" and similar expressions may be used to identify
forward-looking statements. Those statements reflect our current views with
respect to future events or conditions, including prospective results of
operations, financial position, predictions of future actions or plans or
strategies.
    Certain material factors and assumptions were applied in drawing our
conclusions and making those forward looking statements. By their nature,
those statements reflect management's current views, beliefs and assumptions
and are subject to certain risks, uncertainties, known and unknown, and
assumptions, including, without limitation, machinery development or
production delays, changing environmental regulations, the ability to attract
and retain business partners, the ability to exploit hydrocarbon resources
with our technology, future levels of government funding, the need to obtain
and maintain proprietary rights over our technology, competition from other
technologies, the ability to access the capital required for research,
technology development, operations and marketing, the need to generate
positive cash flow in the foreseeable future, changes in energy prices and
currency levels.
    Many factors could cause our actual results, performance or achievements
to be materially different from any future results, performance or
achievements that may be expressed or implied by these forward-looking
statements. Should one or more of these risks or uncertainties materialize, or
should the assumptions underlying our projections or forward-looking
statements prove incorrect, our actual results may vary materially from those
described in this press release as intended, planned, anticipated, believed,
estimated, or expected. We do not intend and do not assume any obligation to
update these forward-looking statements whether as a result of new
information, plans, events or otherwise.
    Our securities are not traded on any stock exchange in Canada and thus,
OSUM is not subject to regulation by any Canadian stock exchange. Our
securities are also not registered under the United States Securities Act of
1933 nor are they traded on any securities or stock exchange in the United
States. As a result, we are not presently subject to the reporting,
certification or other requirements imposed on U.S. registered issuers under,
among other things, U.S. Sarbanes-Oxley Act of 2002 ("SOX").





For further information:

For further information: For Osum Oil Sands Corp: Business Inquiries,
Richard Todd, Chairman and CEO, (403) 283-3224; Media Inquiries, Justin
Robinson, Communications Manager, (403) 270-4766; For Warburg Pincus: Joseph
Kuo or Todd Fogarty, Kekst and Company, (212) 521-4800, joe-kuo@kekst.com or
todd-fogarty@kekst.com

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OSUM OIL SANDS CORP.

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