HONG KONG, August 13, 2014 /PRNewswire/ — (HKEX: 2012; TSX: SUO) Sunshine Oilsands Ltd. (“Sunshine” or the “Company”) today announced its financial results for the second quarter of 2014. The Company’s condensed interim consolidated financial statements, notes to the condensed interim consolidated financial statements and Management’s Discussion and Analysis have been filed on SEDAR (www.sedar.com) and with the SEHK at (www.hkexnews.hk) and are available on the Company’s website (www.sunshineoilsands.com). All figures are in Canadian dollars unless otherwise stated.
Message to Shareholders
On behalf of the directors and management team, we are pleased to report that Sunshine is finally able to move forward with completion of the first 5,000 barrels per day phase of our approved 10,000 barrels per day West Ells project. When Sunshine’s strategic review process was initiated last year to identify, examine and consider strategic alternatives, we remained determined to address our accounts payable and capital requirements in a manner that would facilitate recommencement of construction activities in our West Ells project area. This was viewed as achievable. It was also viewed as the best way to substantially enhance value to our shareholders. While this strategic initiatives process has taken more time than we had originally hoped, it has resulted in three significant milestone accomplishments since November of 2013. First, we have successfully closed approximately US$150 million of equity financings. Second, we completed the sale of a non core asset for CAD$20 million. Third, we completed the closing of an offering of US$200 million of senior secured notes.
Our West Ells Asset Team has outlined the following milestones for recommencement of West Ells construction, for initiation of first steam in the first quarter of 2015 and for production in the third quarter of 2015:
- Approximately eight weeks for completing all preparations for construction recommencement after quality assurance activities are completed;
- Approximately 16 weeks for completion of construction, assuming no interruptions or delays;
- Approximately four weeks for site commissioning and startup of steam injection operations; and
- Approximately 16 weeks of steam injection until first oil production is achieved.
Project staging and quality assurance activities are progressing actively to support preparations for recommencement of West Ells construction. Once this is completed, construction preparations are expected to take approximately eight weeks and actual construction of the first 5,000 barrels per day phase, which is already approximately 81% complete, is expected to take approximately four months, assuming no interruptions or delays. This will be followed by a period of approximately one month for site commissioning and startup of steam injection operations. First oil production is expected in the third quarter of 2015, after approximately four months of steam injection.
Sunshine’s corporate direction has now been completely reset through resolution of serious challenges associated with cost overruns, market volatility and changing market sentiment toward oil sands investment. Going forward, we are determined to see our Company perform to, and above, expectations on all levels.
Michael J. Hibberd
Interim President & CEO
FORWARD-LOOKING INFORMATION AND DISCLAIMER
This document contains forward-looking information relating to, among other things: (a) the future financial performance and objectives of Sunshine Oilsands Ltd. (“Sunshine” or the “Company”); and (b) the plans and expectations of the Company. Such forward-looking information is subject to various risks, uncertainties and other factors. All statements other than statements and information of historical fact are forward-looking statements. The use of words such as “estimate”, “forecast”, “expect”, “project”, “plan”, “target”, “vision”, “goal”, “outlook”, “may”, “will”, “should”, “believe”, “intend”, “anticipate”, “potential”, and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on Sunshine’s experience, current beliefs, assumptions, information and perception of historical trends available to Sunshine, and are subject to a variety of risks and uncertainties including, but not limited to those associated with resource definition and expected reserves and contingent and prospective resources estimates, unanticipated costs and expenses, regulatory approval, fluctuating oil and gas prices, expected future production, the ability to access sufficient capital to finance future development and credit risks, changes in Alberta’s regulatory framework, including changes to regulatory approval process and land-use designations, royalty, tax, environmental, greenhouse gas, carbon and other laws or regulations and the impact thereof and the costs associated with compliance. Although Sunshine believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this document are not exhaustive and readers are not to place undue reliance on forward-looking statements as our actual results may differ materially from those expressed or implied. Sunshine disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this document, except as required under applicable securities legislation. The forward-looking statements speak only as of the date of this document and are expressly qualified by these cautionary statements.
Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. For a full discussion of our material risk factors, see “Risk Factors” in our most recent Annual Information Form, “Risk Management” in our current MD&A for the three and six months ended June 30, 2013 and risk factors described in other documents we file from time to time with securities regulatory authorities, all of which are available on the Hong Kong Stock Exchange at www.hkexnews.hk, on the SEDAR website at www.sedar.com or our website at www.sunshineoilsands.com.
About Sunshine Oilsands Ltd.
The Company is engaged in the evaluation and the development of oil properties for the future production of bitumen in the Athabasca oil sands region in Alberta, Canada. Sunshine trades on the HKEX under the symbol “2012” and on the TSX under the symbol “SUO”.