CALGARY, Jan. 20, 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, is pleased to announce that it has selected Kellogg
Brown & Root LLC ("KBR") to provide project and construction management services for the
Company's PR Spring Project. Working jointly with US Oil Sands, KBR
will work to bring both the extraction facilities and mine development
into commercial production.
"Having KBR's Salt Lake City team supporting our project adds tremendous
reach to our current pool of expertise," said Cameron Todd, CEO of US
Oil Sands. "We will be able to draw on KBR's significant oil sands,
mining, equipment module and plant construction experience to ensure
that budgets and timelines are tightly controlled and that the project
is delivered in accordance with our shareholder's expectations. We
remain 100% committed to making this flagship oil sands project one
that the State of Utah will be proud of, especially as it relates to
environmental leadership, sustainable energy development, and
beneficial economic contribution for the citizens of Utah."
Having closed an $81 million financing in October 2013, the Company's PR
Spring Project is fully funded thereby allowing the Company to focus
its immediate attention on project execution. In addition to aligning
itself with one of the world's most respected engineering firms to
steward the project through to commercial commissioning and start-up,
the Company has also been active in building out its internal
capabilities. The Company will also seek to leverage the technical
expertise of its directors, including Ronald Pantin of Pacific Rubiales
Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) and Rod Lewis of
Lewis Energy who sit on the Company's Technical Committee.
US Oil Sands has recently opened an office in Salt Lake City from which
process engineering, mine engineering, health safety and environment,
and regulatory/government affairs will be conducted.
KBR is currently working closely with FLSmidth, one of the Company's key
process design and equipment suppliers. With the detailed engineering
stage underway and the placement of long lead equipment orders
imminent, both KBR and FLSmidth will work to ensure attainment of the
Company's mandate of best-in-class business and operating performance,
and environmental outcomes. While significantly reducing capital cost,
US Oil Sands' innovative approach to oil sands development uses a
non-toxic bio-solvent that eliminates the need for tailings ponds and
facilitates concurrent and rapid mine reclamation. During this
process, the Company believes its full scale production plant will
achieve an industry leading 95% water-recycle ratio and a 96% oil
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 2015.
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 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.
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 1600, 521 - 3rd Avenue SW
Calgary, Alberta T2P 3T3
Tel: +1 403 233 9366
300 - 5th Avenue SW, 10th Floor
Tel: +1 403 218 2833