CALGARY, Dec. 5 /CNW/ - The Board of Directors of Synenco Energy Inc.
today announced the appointment of Todd Newton as President and Chief
Executive Officer of the company. Mike Supple, Synenco Energy's founder and
formerly Executive Chairman and Chief Executive Officer, will remain as
non-executive Chairman of the Board of Directors.
The appointment of Mr. Newton follows a plan set out by Synenco in
December 2005, when Mr. Supple agreed to serve as Chief Executive Officer for
a two-year period. At that time, Mr. Newton was appointed President and Chief
Operating Officer of Synenco Energy, having served as Executive Vice President
and Chief Financial Officer of the company since June 2004.
"The appointment of Todd Newton as chief executive officer is recognition
of his leadership in the assessment and definition of Synenco's business
strategy," said Mr. Supple. "In particular, Mr. Newton has refocused and
restructured the company's project development efforts on Northern Lights and
has led other initiatives that we are confident will add to the long-term
strength and value proposition of Synenco Energy."
"The assets of this company point to a great future," said Mr. Newton.
"We have substantial bitumen resources, coal resources on our coal lease
application areas, over $250 million of cash for our near-term development
needs, and a highly competent workforce. With this combination, I'm confident
in the future."
Prior to joining Synenco, Mr. Newton was a partner in Deloitte & Touche
LLP and led the firm's services to a number of publicly-held global energy
clients. While with Deloitte & Touche he served in both management and senior
client-leadership roles and was located in Houston, Stockholm, Moscow and
Oslo. Mr. Newton received his Bachelors degree in Business Administration
(Accounting) from the University of Texas at San Antonio and is a Certified
"Mike Supple is to be credited for his twin qualities of vision and
perseverance, which were central to the formation of Synenco Energy, the
acquisition and early development of the company's oil sands leases, and the
creation of the Northern Lights Partnership," said John Cordeau, Chairman of
the Governance and Appointments Committee of the Board of Directors. "Synenco
will continue to benefit from his experience at the board level."
Mr. Supple, a prominent business leader, is the recipient of two
Government of Canada awards for business excellence. He has more than 40 years
of experience in the international petroleum industry and related businesses.
About Synenco Energy and Northern Lights
Synenco Energy (TSX: SYN) is a Calgary-based oil sands company which,
with a 60-percent interest, is the managing partner of the Northern Lights
Partnership and operator of the Northern Lights oil sands project. Synenco, on
behalf of the NLP, holds five coal lease applications in northeastern Alberta.
In addition, Synenco Energy also holds a 100-percent interest in the
McClelland oil sands lease adjacent to Northern Lights project lands.
SinoCanada Petroleum Corporation, an indirect wholly owned subsidiary of
China-based Sinopec, owns the remaining 40 percent of the Northern Lights
Partnership and project.
Cautionary note regarding forward-looking statements
This news release contains "forward-looking statements" relating to
Synenco Energy Inc. ("Synenco") and NLP that are subject, in their entirety,
to this cautionary note. Forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "intend", "could", "might",
"should", "believe" and similar expressions.
Estimates of NLP's in-place bitumen "Discovered Resources" are made as of
December 2006. Estimates of coal mineral resources in lands subject to NLP
coal lease applications are as of May 8, 2007. Estimates of NLP's bitumen
"Contingent Resource" are made as of June 2007 and are forward-looking
statements. (The terms "Contingent Resource" and "Discovered Resource" are
defined in the COGE Handbook. The terms "Inferred mineral resources" and
"Indicated mineral resources", as relating to coal, are defined in the CIM
Standards.) Further classification into contingent resources and/or reserves
is dependent on additional feasibility studies, validation through pilot
testing of the planned extraction process, and the issuance by the Government
of Alberta of a mine permit. Resource estimates are inherently uncertain and
are generally considered more uncertain than estimates of reserves. Future
estimates of recoverable resources and actual recoverable resources will
differ and may differ materially from the estimate of in-place bitumen
Discovered Resources or other resources.
Statements with respect to the estimated capital costs for the project,
anticipated capital cost savings associated with the modular
construction/northern transportation strategy, capital cost sensitivities,
operating costs, netbacks, yields, cash flow, estimated rates of return, oil
price assumptions, natural gas and power requirements, costs of capital, the
project's proposed design, execution strategy and development schedule,
anticipated production, anticipated cash expenditures and commitments, the
proposed northern route, the benefits of modularization, anticipated water
consumption, the anticipated reclamation cycle, the timing of regulatory
review and approval, the economic impact of utilization of the coal resources,
and the sufficiency of cash resources are all forward-looking statements. All
other statements suggesting future plans and outcomes, including without
limitation statements regarding possible transactions are forward-looking
statements. Readers are strongly cautioned that forward-looking statements are
inherently uncertain and based on a number of estimates and assumptions and
subject to known and unknown risks and uncertainties. Undue reliance must not
be placed on them. Actual results will differ and may differ materially.
Factors which could cause actual results to differ materially from those
expressed or implied include but are not limited to: availability and
fluctuating price of oil and energy commodities; heavy/light crude oil
differentials; operating conditions and costs; interest rate fluctuations;
costs of construction materials, labour and transportation; labour
disruptions; the level of engineering data available for estimations; changes
or refinements in project design and engineering or transportation and
execution strategy; economic recoverability of resources; ability to transport
modules as contemplated or at all; ability to secure adequate product and
diluent transportation; ability to finalize a binding agreement with Agrium or
others for the sale of by-products from the upgrader; changes in law or
government policy such as changes in the oil sands royalty regime and/or tax
regime, the regulatory environment and federal and provincial environmental
legislation; public opinion with respect to water usage, environmental issues
and socio-economic impacts of oil sands and energy projects; the ability to
obtain regulatory and governmental approvals and licenses on a timely basis or
at all (including, without limitation, approvals in respect of coal leases for
which NLP has made application); the ability to identify and successfully
negotiate commercially advantageous transactions; and the availability and the
cost of debt and equity financing. Refer also to the risk factors in Synenco's
annual information form dated March 9, 2007. Forward-looking statements are
made as at the date of this news release and are not guarantees of future
performance. Synenco expressly disclaims any obligation to update publicly or
revise any of the forward-looking statements except as required by law.
Forward-looking information relating to the modular construction/northern
transportation strategy for the upstream project including its estimated
capital cost of $4.4 billion (2006 dollars) is based upon preliminary study by
management, and management's estimates and assessment of feasibility. Given
the early stage of the Project, there is no assurance that the proposed
strategy can be implemented, or implemented at the estimated costs. Management
has assumed the ability to negotiate and finalize binding agreements with
module fabricators and transportation companies for the manufacture and
transport of modules as contemplated by Synenco's modular
manufacturing/northern transportation strategy including the costs and
timeframes estimated by management. The modular construction/northern
transportation strategy also assumes that the risks associated with the
transportation routing proposed by management including those associated with
the weather and other physical and timing constraints imposed by the northern
routing can be successfully mitigated. This strategy also assumes that Asian
political, economic and labour sectors, and the costs of materials including
steel, and labour will not undergo significant change within the timeframes
projected for fabrication.
For further information:
For further information: Media: Scott Ranson, General Manager, Public
Affairs, Telephone: (403) 451-5212, Cellular: (403) 619-5038,
firstname.lastname@example.org; Investment community: Todd Newton, President and
Chief Executive Officer, Telephone: (403) 261-1990, email@example.com