CALGARY, March 12, 2014 /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 audited
consolidated financial statements ("Financial Report") for the twelve month period ended December 31, 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
Some of the achievements in 2013 include:
Completed a private placement for gross proceeds of $81,005,452 that
fully funds the PR Spring 2,000 bbl/day project (The "PR Spring
Project") to first oil;
Selected Kellogg Brown & Root LLC ("KBR") to provide project and construction management services for the PR
Spring Project. Working jointly with US Oil Sands, KBR will work to
bring extraction facilities and mine development to commercial startup;
Completed an extended duration pump test of the deep aquifer, confirming
the supply and delivery capabilities of the water source for the PR
Spring Project and expansion;
Initiated the opening of the PR Spring Project site through supply of
road-building materials for a state-funded road building project; and
Received a favorable ruling from the Utah Board of Oil, Gas and Mining
regarding a challenge to the Company's large mine permit.
"2013 was a pivotal and transformational year for our Company, as we
were able to successfully complete an $81 million equity financing that
fully funds the development of our 2,000 bbl/day PR Spring Project,"
said Cameron Todd, CEO of US Oil Sands. "Having recently engaged KBR to
lend their world-class expertise to the engineering and project
management of the PR Spring Project, our attention is now squarely
focused on progressing operations towards commercial startup in
During 2013, the Company continued to work with its engineering
consultants and equipment suppliers to enable initiation of project
work on Phase 1 of the PR Spring Project. Project construction,
management and consulting contracts have been awarded to KBR, FLSmidth
USA Inc., and Norwest Corporation.
Work on the PR Spring Project site was initiated through an agreement to
supply water and raw road-building materials for a state-funded road
construction project. US Oil Sands permitted and mobilized a man-camp
to support field operations. Crushed aggregate for the road was
obtained from areas within the Company's planned mine pit. This
allowed the Company to initiate mine-opening earlier and reduce future
mining costs while eliminating surface disturbance from a separate
gravel supply pit. Pumping equipment was installed to bring the
production water well to operational status. In supplying water for
the road project, US Oil Sands was able to concurrently execute an
extended duration pump test of the deep aquifer. This three month test
exceeded previous ground water model predictions and confirmed the
supply capability of project water supply for future expansion. This
water installation will now be used as a key part of the Phase 1 mining
and extraction project.
On October 18, 2013, the Company closed an $81 million private equity
financing, issuing 540,036,331 Common Shares at a price of $0.15 per
Common Share. The price per share represented close to a 50% premium to
the then market trading price of the Company's shares. Following
completion of the financing, and as at December 31, 2013, the Company
had a total of 852,892,395 Common Shares outstanding on a non-diluted
basis. The Company intends to use proceeds from the financing to
complete the first phase of the commercial development of the PR Spring
Project and to accelerate future production phases. Proceeds raised in
excess of those required to fund the PR Spring Project will allow the
Company to initiate corporate development activities that may include
the acquisition of, or participation in, other oil sands assets.
In connection with the financing, Serafino Iacono, Ronald Pantin,
Stephen Lehner, and Alfred Holcomb were appointed to the Company's
Board of Directors, joining continuing directors Ed Chwyl, Cameron Todd
and Verne Johnson.
SUMMARY OF SELECTED 2013 FINANCIAL RESULTS
The following financial data was selected from the Company's
consolidated financial statements which have been prepared using the
accounting policies under IFRS as issued by the International
Accounting Standards Board.
Total comprehensive loss
Cash used in operations
Loss per share - basic and diluted
As at December 31, 2013, the Company had cash and cash equivalents of
$77,582,389, net working capital of $77,267,313 and no commitments for
capital expenditures. The Company intends to use its cash and cash
equivalent balance to fulfill its current liabilities and fund its PR
Spring Project. The Company has no bank debt or banking credit
facilities in place.
A former Director of the Company exercised 250,000 options at an
exercise price of $0.115 per share on January 14, 2014. On January 16,
2014, 1,250,000 options with a weighted average exercise price of
$0.154 that had been granted to former Directors expired.
For the remainder of 2014, US Oil Sands will continue to focus on site
preparation and construction of the PR Spring Project, including final
project engineering and procurement of necessary equipment and
supplies. In keeping with these activities, management anticipates that
the majority of off-site fabrication of the process extraction plant
will be completed in 2014, with final field assembly and commercial
start-up expected to occur in 2015.
As a part of its longer term strategic objectives, US Oil Sands intends
to pursue additional opportunities both through exploration and
acquisition of additional resource lands. Also as part of this
strategy, management intends to further its regulatory application
efforts on its Utah properties, to ensure a ready inventory of future
mineable assets for the Company.
ABOUT US OIL SANDS INC.
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 2015.
The foregoing information contains forward-looking information relating
to the future performance of the Company including information relating
to the use of proceeds of the Financing, the development and
construction of the PR Spring Project, commencement of commercial
production and corporate development activities. 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