OPTI provides update on equity offering


    TSX: OPC

    CALGARY, June 25 /CNW/ - OPTI Canada Inc. ("OPTI" or the "Company") is
providing an update on its previously announced public offering (the
"Offering") of common shares (the "Common Shares") conducted through a
syndicate of underwriters led by TD Securities Inc., Credit Suisse Securities
(Canada), Inc. and RBC Capital Markets as joint bookrunners, together with
Scotia Capital Inc., CIBC World Markets Inc., FirstEnergy Capital Corp., HSBC
Securities (Canada) Inc. and National Bank Financial Inc. (the
"Underwriters"). After conducting a broad, overnight marketed offering that
was fully subscribed, OPTI reached an agreement with its Underwriters
yesterday morning to issue 88,250,000 Common Shares at a price of $1.70 per
share ("Offering Price") for total gross proceeds of approximately $150
million. OPTI also agreed to grant the Underwriters a 15% over-allotment
    As with any public issue, OPTI requires Toronto Stock Exchange ("TSX")
approval in order to complete the Offering. In considering the offering
yesterday, the TSX exercised its discretion to apply its private placement
rules to the prospectus offering and informed OPTI that it was not prepared to
approve the Offering without OPTI shareholder approval as the Offering Price,
in the specific circumstances of OPTI, was at a greater than 20% discount
relative to the volume weighted average price of OPTI shares for the preceding
five trading days. Given the length of time required to provide proper notice
and conduct a shareholders meeting, OPTI believes this requirement to be
    OPTI's shares are expected to resume trading today after the
dissemination of this press release. At this time, OPTI and the Underwriters
intend to continue marketing the Offering and to re-seek approval for the
Offering when the Offering meets the TSX requirements.
    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States or any other
jurisdiction outside of Canada, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Common Shares offered have not been, and will not be, registered under the
1933 Act, or any state securities laws and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements of the 1933 Act and applicable state securities

    About OPTI

    OPTI is a Calgary, Alberta-based company focused on developing major oil
sands projects in Canada using its proprietary OrCrude(TM) process. OPTI's
first project, Phase 1 of the Long Lake Project, consists of 72,000 barrels
per day of SAGD oil production integrated with an upgrading facility. The
Upgrader uses the OrCrude(TM) process combined with commercially available
hydrocracking and gasification. Through gasification, this configuration
substantially reduces the exposure to and the need to purchase natural gas. On
a 100 percent basis, the Long Lake Project is expected to produce 58,500 bbl/d
of products, primarily 39 degree API Premium Sweet Crude with low sulphur
content, making it a highly desirable refinery feedstock. Due to its premium
characteristics, OPTI expects PSC(TM) to sell at a price similar to West Texas
Intermediate (WTI) crude oil. The Long Lake Project is a joint venture with
the Operator, Nexen Inc. OPTI holds a 35 percent working interest in the joint
venture. OPTI's common shares trade on the Toronto Stock Exchange under the
symbol OPC.
    Additional information regarding the Long Lake Project is available at

    Forward-Looking Statements

    Certain statements contained herein are forward-looking statements,
including statements relating to OPTI's financing plans; OPTI's operations,
business prospects, expansion plans and strategies; OPTI's plans and
expectations concerning the use and performance of the OrCrude(TM) process and
other related technologies; the cost, development and operation of the Long
Lake Project and OPTI's relationship with Nexen Inc. Forward-looking
information typically contains statements with words such as "intends,"
"anticipate," "estimate," "expect," "potential," "could," "plan" or similar
words suggesting future outcomes. Readers are cautioned not to place undue
reliance on forward-looking information because it is possible that
expectations, predictions, forecasts, projections and other forms of
forward-looking information will not be achieved by OPTI. By its nature,
forward-looking information involves numerous assumptions, inherent risks and
uncertainties. A change in any one of these factors could cause actual events
or results to differ materially from those projected in the forward-looking
information. Although OPTI believes that the expectations reflected in such
forward-looking statements are reasonable, OPTI can give no assurance that
such expectations will prove to be correct. Forward-looking statements are
based on current expectations, estimates and projections that involve a number
of risks and uncertainties which could cause actual results to differ
materially from those anticipated by OPTI and described in the forward-looking
statements or information including the risk that OPTI may not be able to
satisfy the covenants or conditions of its credit facilities and the potential
accelerated repayment of such credit facilities and its senior secured notes.
The forward-looking statements are based on a number of assumptions which may
prove to be incorrect. In addition to other assumptions identified herein,
OPTI has made assumptions regarding, among other things: market costs and
other variables affecting operating costs of the Project; the ability of the
Long Lake joint venture partners to obtain equipment, services and supplies,
including labour, in a timely and cost-effective manner; the availability and
costs of financing; oil prices and market price for the PSC(TM) output of the
OrCrude(TM) Upgrader; foreign currency exchange rates and hedging risks;
government regulations and royalty regimes; the degree of risk that
governmental approvals may be delayed or withheld; other risks and
uncertainties described elsewhere in this document or in OPTI's other filings
with Canadian securities authorities.
    Readers should be aware that the list of factors, risks and uncertainties
set forth above are not exhaustive. Readers should refer to OPTI's current
Annual Information Form which is available at www.sedar.com, for a detailed
discussion of these factors, risks and uncertainties. The forward-looking
statements or information contained in this document are made as of the date
hereof and OPTI undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable laws
or regulatory policies.

For further information:

For further information: OPTI Canada Inc., (403) 249-9425

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