CALGARY, Nov. 12, 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 and nine month period ended September 30, 2013 along
with the management's 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
Closing of $81 million private placement financing (the "Financing") subsequent to the end of the quarter that fully funds Phase 1 of the PR Spring Project and enables the
Company to pursue corporate development activities in other oil sands
Financing related activities including marketing, negotiation, field
reviews and due diligence;
Initiated opening of the PR Spring Project site through supply of
road-building materials for the state-funded road building project;
Extended duration pump test of the deep aquifer confirming the supply of
project water for future expansion; and
Immediate ramp-up of all professional and supplier activities for the
5,930 acre PR Spring Project.
"The past several months were highlighted by the closing of our $81
million financing that not only funds the initial commercial phase of
our PR Spring Project, but also enables us to explore future
partnerships and global growth opportunities for our best-in-class
environmental approach to oil sands development," said Cameron Todd,
CEO of US Oil Sands. "In the near-term we will continue to focus on
project management of the PR Spring Project and finalize its scheduling
and capital budgeting. The financing was the last major hurdle to
overcome and we are now able to proceed on a fully funded basis."
During the third quarter ("Q3 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
consulting contracts have been awarded to FLSmidth and Norwest
Corporation. The Company's detailed mine planning facilitated the
identification and planning of future expansion areas within the PR
Spring leased acreage area.
Work on the PR Spring Project site was initiated through an agreement to
supply water and raw road-building materials in for a state-funded road
building project. US Oil Sands permitted and mobilized a man-camp to
support field operations. The provision of road building materials
enabled the Company to conduct initial mine opening activities during
the quarter and at minimal cost to the Company. Crushed aggregate to
supply 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 also 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.
Subsequent to the end of Q3 2013, the Company closed its previously
announced $81 million private equity financing, issuing 540,036,331
Common Shares at a price of $0.15 per Common Share. All Common Shares
issued pursuant to the Financing are subject to a statutory hold period
of four months from the date of closing. Following completion of the
Financing, the Company has 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.
The Company also announced that pursuant to the Company's stock option
plan, a total of 29,900,000 stock options were granted to Directors,
Officers, Employees and Consultants of the Company at an exercise price
of $0.19 per share expiring November 12, 2018, subject to regulatory
With financing complete, the Company is now able to dedicate its efforts
to bringing Phase 1 of the PR Spring Project to commercial status. For
the remainder of 2013, the Company will continue to focus on the
engineering and mine design, procurement of long-lead items, and
general site preparation and construction related to Phase 1 of the PR
Spring Project. Management anticipates that the off-site fabrication of
the process extraction plant will be substantially complete in 2014,
with field assembly to occur in 2015 followed by commercial start-up
and bitumen production.
Management intends to continue its pursuit of opportunities to add
additional resource lands by assessing growth opportunities and
furthering regulatory application efforts that ensure a ready inventory
of future mineable assets for the Company.
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 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.
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
Calgary, Alberta T2P 3C4
Tel: +1 403 218 2833