CALGARY, May 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 March 31, 2013 ("Q1 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 FIRST QUARTER OPERATIONAL & FINANCIAL HIGHLIGHTS
Received favourable ruling from the Board of Directors of the Utah
Division of Oil, Gas and Mining ("DOGM") upholding previously issued
permits for the Company's PR Spring Project Area;
Continued progression of the 5,930 acre PR Spring Project Area,
including final engineering design planning and pilot plant operations
Completed and filed independent resource evaluation report that assessed
the bitumen resource of the Company's PR Spring property at 184 million
barrels of best estimate discovered resource.
"Our first quarter was focused on steadily progressing our PR Spring
Project Area, on which we are currently working through optimization of
engineering and mine design" said Cameron Todd, CEO of US Oil Sands.
"From a regulatory standpoint, our previously approved mining permit
has received favorable legal rulings, with Utah's Department of Oil,
Gas and Mining continuing to recognize our mining permit and
best-in-class environmental practices. Operationally, we remain on
track for commercial start-up in 2014 and continue to highly prioritize
the process of marketing and closing a Joint Venture financing."
During the first quarter of 2013 the Company continued to work with its
engineering consultants and equipment suppliers to optimize engineering
design on the PR Spring Project. Additionally, the Company continued to
work on future mine planning activities with the assistance of its
third party mine engineering consultants.
Subsequent to the end of quarter, and in compliance with National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities,
the Company released the independent resource evaluation report issued
by Calgary-based Sproule Unconventional Limited ("Sproule") dated April 29, 2013. The evaluation results detail the bitumen
resource assessment of the Company's PR Spring property in Utah as of
February 28, 2013, and incorporate the results of the 184 wells drilled
and cored on the Company's PR Spring Project Area in 2011 and 2012.
Sproule's independent best estimate of discovered resource is 184
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 hearing was initiated through a Request for Agency Action
filed by a Utah-based environmental organization in September 2010
against DOGM, claiming that DOGM improperly issued the Company's Notice
of Intention to Commence Large Mining Operations. The decision was
published February 27, 2013 by the chairman of the board of DOGM. The
timeframe within which an appeal by the Utah-based environmental
organization 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 stands as final and fully
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 the 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 design and procurement of equipment, as it continues
to progress site preparation and construction of the PR Spring Project
Area. The Company anticipates that the majority of the fabrication of
the process extraction plant will be completed in 2013, with final
field assembly to occur in 2014. Following this, the PR Spring Project
will be ready for commercial start-up. The timing of these plans is
dependent on when the Company raises the capital necessary to undertake
the major expenditures. In keeping with this, Management has enlisted
the assistance of external corporate finance support in order to
continue the process of marketing and closing a joint venture
Management has also initiated the process of preliminary mine planning
and permitting activities intended for future production areas within
the broader PR Spring Project Area. In addition to this, US Oil Sands
intends to continue its long term strategic goal of acquiring the
rights to additional resource lands by assessing relevant growth
opportunities that exist outside its immediate area of operation. This
is to ensure that the Company has a ready inventory of future mineable
assets and prospects through which it can continue to grow its business
over the long-term.
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, mine
planning, commencement of commercial production, and resource
estimates. 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.
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 1600, 521 - 3rd Avenue SW
Calgary, Alberta T2P 3T3
Tel: +1 403 233 9366
300 5th Ave. SW, 10th Floor
Calgary, Alberta T2P 3C4
Tel: +1 403 218 2833