Western Oil Sands Announces New $805 Million Revolving Credit Facility



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

    CALGARY, June 25 /CNW/ - Western Oil Sands Inc. (TSX: WTO) ("Western") is
pleased to announce the closing of a new $805 million five-year revolving bank
credit facility (the "Credit Facility"). The Credit Facility was arranged by
RBC Capital Markets with a syndicate of leading financial institutions and
replaces Western's existing $340 million revolving credit facility.
    Standard & Poor's ("S&P") and Moody's Investor Services ("Moody's") have
rated this Credit Facility BBB and Ba2, respectively. Coincident with placing
this Credit Facility, the credit rating assigned by Moody's on Western's
US$450 million Notes ("Notes") was increased to Ba2. S&P had previously
increased the rating on the Notes to BBB. Western is pleased with the recent
rating assignments on its external debt made possible by the improved credit
profile of the Company over the last several years.
    This Credit Facility will be used to finance Western's share of the
capital requirements associated with Expansion 1 of the Athabasca Oil Sands
Project ("AOSP") and for general corporate purposes. Expansion 1 is a fully
integrated expansion of the existing AOSP facilities which will add 100,000
barrels per day (20,000 barrels per day net to Western) of production
anticipated to commence in late 2010. Capital costs associated with
Expansion 1 are budgeted at $11.2 billion ($2.2 billion net to Western) and
construction is proceeding on schedule and on budget.

    About Western Oil Sands

    Western Oil Sands Inc. is a Canadian corporation listed on the Toronto
Stock Exchange under the symbol WTO. Our vision is to create shareholder value
through the opportunity capture and development of large, world-class
hydrocarbon resources. Our primary asset is our 20 per cent undivided interest
in the Athabasca Oil Sands Project. Western is also pursuing initiatives
related to in-situ and technology development as well as downstream
opportunities. WesternZagros, a wholly-owned subsidiary of Western, is
pursuing conventional oil and gas exploration opportunities in the Federal
Region of Kurdistan in Northern Iraq. For additional information on Western
Oil Sands visit www.westernoilsands.com.

    This press release may contain forward-looking information, including
information relating to Western's future development and expansion plans.
Forward-looking information typically contains statements with words such as
"anticipate", "estimate", "expect", "potential", "could", or similar words
suggesting future outcomes. We caution readers and prospective investors of
the Company's securities not to place undue reliance on forward-looking
information as by its nature, it is based on current expectations regarding
future events that involve a number of assumptions, inherent risks and
uncertainties, which could cause actual results to differ materially from
those anticipated by Western. Risks include those normally associated with
accessing capital markets and the exploration and development of oil and gas.
Risks associated with our international initiatives include, but are not
limited to political and economic conditions in the countries in which we
intend to operate, risks associated with acts of insurgency or terrorism,
changes in market conditions, risks associated with obtaining financing on
acceptable terms, political risks, including changes in law, regulation or
government policy, risks associated with negotiating with foreign governments
and risks generally associated with international activity. No assurances can
be given that WesternZagros will be able to maintain or obtain effective
security or insurance over any of its assets or personnel in Iraq where, at
times, terrorism and insurgent activities have disrupted various business
activities during the past and may affect Western's operations or plans in the
future.





For further information:

For further information: David A. Dyck, Senior Vice President Finance
and Chief Financial Officer, (403) 233-1700; Dorreen Miller, Manager, Investor
Relations & Communications, (403) 233-1757

Organization Profile

MARATHON OIL CANADA CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890