CALGARY, Sept. 28, 2011 /CNW/ - US Oil Sands Inc. ("US Oil Sands" or the "Company") (TSXV: USO.V) is pleased to announce that it has successfully
completed its 145 well planned drilling program on its 100% owned
bitumen leases in the PR Spring area of North-eastern Utah. US Oil
Sands has also completed its planned exploration drilling program on
its recently acquired Cedar Camp leases located approximately 5 miles
from the PR Spring development area. (The initiation of this program
was previously announced in the Company's July 5 press release).
As of September 23, 2011 the Company had completed its program of 163
wells on its Utah lands. In each well cores were taken from surface to
hole bottom and core was successfully recovered from every well.
Detailed results are not yet available pending the final analysis of
assays expected in the fourth quarter of this year. The Company has
discovered and confirmed the presence of commercial quantities of high
quality bitumen resources on its development acreage. As a result the
Company confirms its intent to continue development plans targeting
construction of the PR Spring Bitumen Development Project in mid-2012
and project start-up in 2013.
US Oil Sands has contracted Wirtgen, a global mining equipment supplier,
to conduct a specification assessment run of its mining equipment at
the Company's PR Spring mine site in order to finalize equipment
specification for use in the PR Spring project. The test will be
conducted in late October.
As previously announced the Company has also contracted FLSmidth, a
global mining extraction equipment supplier, to prepare final process
equipment design, drawings and specifications for the project. This
work will be completed in Q4.
Extension of US Core Drilling Program
The 2011 core hole drilling program was completed ahead of schedule and
below the $5.1 million budget. As a result of the success of the
program and the continued availability of drilling equipment, the
Company has decided to further expand the 2011 drilling program. Up to
17 additional wells will be drilled bringing the total program to 180
wells. These additional wells will be drilled within the original $5.1
million budget. The program has been extended primarily to assess
further development potential on the PR Spring lease as well as to
assess additional exploration lands located on its NW lease blocks,
located approximately 8 miles from its PR Spring project area.
Utah Energy Summit
US Oil Sands also wishes to announce its participation in a Utah Energy
Summit. At the conference held September 28, 2011 at Vernal, Utah, US
Oil Sands CEO Cameron Todd will present a paper entitled "Developing
the USA's largest Oil Sand Resource". A number of leading Utah energy
companies will also be presenting and the conference will be headlined
by Utah Governor Gary Herbert. A copy of US Oil Sands presentation will
be posted to the US Oil Sands website listed below.
About US Oil Sands Inc.
US Oil Sands is engaged in the exploration and development of oil sands
properties. The Company, through its wholly owned US subsidiary, has a
100% interest in bitumen leases covering 32,005 acres of land in Utah.
US Oil Sands plans to develop its oil sands properties using its
patent-pending extraction process. This process is an efficient and
environmentally responsible approach to oil sands development. Using a
bio-solvent, US Oil Sands is able to separate bitumen from oil sand
without the need for tailings ponds. The process requires low energy
input, recycles 95% of the water used and uses best practice mining
methods to rapidly reclaim mined areas. US Oil Sands has received a
permit to construct the PR Spring Bitumen Mining commercial project on
its Utah property and is currently in the final design stage targeting
first production in 2013.
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 news
This news release contains certain forward-looking statements including
but not limited to US Oil Sands planned core hole drilling and
evaluation program, resource evaluation program, future development
plans, and application of its proprietary extraction process. The
forward-looking statements contained in this document are solely
opinions and forecasts which are uncertain and subject to risks.
Forward-looking statements include but are not limited to uncertainties
and other factors which may cause the actual results, performance or
achievements of US Oil Sands to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. These forward-looking statements are not
guarantees of future performance and are subject to a number of known
and unknown risks and uncertainties. These risks include, but are not
limited to the risks associated with the oil sands industry,
exploration, development and production, delays or changes in plans,
changes to capital costs, the uncertainty of geological and resource
interpretations, the uncertainty of estimates relating to production,
costs and expenses, and health, safety and environmental risks, the
risk of commodity price fluctuation, the risk of changing general
economic conditions, the risks of obtaining and maintaining regulatory
approvals and the ability to obtain sufficient capital from external
Additional risks and uncertainties affecting US Oil Sands and its
business plans and affairs are described in US Oil Sands filing
statement dated April 7, 2011 available at www.sedar.com. Although US Oil Sands believes that the expectations in such forward
looking information are reasonable, there can be no assurance that such
expectations shall prove to be correct. The forward looking information
included herein is made as of the date of this news release and US Oil
Sands assumes no obligation to update or revise any forward looking
information to reflect new events or circumstances, unless required by
SOURCE US Oil Sands Inc.
For further information:
Cameron Todd - Chief Executive Officer
Phone: (403) 233-9366
Glen Snarr - President, Chief Financial Officer and Corporate Secretary
Phone: (403) 233-9366
US Oil Sands corporate presentation may be viewed at the Company's website www.usoilsandsinc.com.