March 10, 2010 – Calgary, Canada – Osum Oil Sands Corp (“Osum” or “the Company”), an in situ oil sands firm, announced today that it has been assigned Proved plus Probable Reserves totalling 320 million barrels in this year’s independent engineering evaluation (conducted by GLJ Petroleum Consultants Ltd, or “GLJ”).
Instrumental in the reserves booking was the fact that in December of 2009, the Company submitted to regulators a commercial application for it’s proposed 35,000 barrel per day Taiga Project. Taiga is located in the Cold Lake region, known for its long productive history that includes the largest thermal in situ projects in North America. Taiga leases have been fully delineated to commercial project approval requirements.
Osum CEO and Chairman, Richard Todd, commenting on the significance of the evaluation, stated, “This proved plus probable reserves designation is reflective of the de-risking of Osum’s high quality Taiga Project at Cold Lake. The Company’s 2.1 billion barrels of best estimate contingent recoverable resources, together with 320 million barrels of 2P reserves at Taiga, could support production in excess of 200,000 barrels per day, for more than 30 years.”
The Company holds an estimated 10 billion barrels of oil in place in it’s two core project areas, Cold Lake and the Saleski carbonates, a fairway that is increasingly recognized for its potential to be one of the world’s next giant commercial bitumen developments.
Todd continued, “Pilot work at Saleski is ongoing this winter, plus Osum continues to attract and build our team of industry professionals as we move to first commercial production. In summary, I am very pleased with our team as we continue to implement key value creation milestones in our strategic plan.”
Osum is targeting first production from Taiga by 2014. The project will use in situ recovery methods.
In contrast to popular imagery associated with oil sands development, in situ developments do not involve tailings ponds, large trucks or mining techniques. Instead, these projects rely on a system of wells with a surface footprint similar to that of conventional oil developments.
Osum is a privately held Alberta based company focused on the application of environmentally responsible in situ recovery technologies within Canada’s oil sands and carbonates. Additional information on the Company is available at www.osumcorp.com.
Cautionary Information and Forward Looking Statements
Certain statements contained in this press release, including the documents incorporated by reference, may contain projections and “forward-looking statements” within the meaning of that phrase under Canadian and U.S. securities laws. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions may be used to identify forward-looking statements. Those statements reflect our current views with respect to future events or conditions, including prospective results of operations, financial position, predictions of future actions or plans or strategies.
Certain material factors and assumptions were applied in drawing our conclusions and making those forward looking statements. By their nature, those statements reflect management’s current views, beliefs and assumptions and are subject to certain risks, uncertainties, known and unknown, and assumptions, including, without limitation, machinery development or production delays, changing environmental regulations, the ability to attract and retain business partners, the ability to exploit hydrocarbon resources with our technology, future levels of government funding, the need to obtain and maintain proprietary rights over our technology, competition from other technologies, the ability to access the capital required for research, technology development, operations and marketing, the need to generate positive cash flow in the foreseeable future, changes in energy prices and currency levels.
Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying our projections or forward-looking statements prove incorrect, our actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements whether as a result of new information, plans, events or otherwise.
Our securities are not traded on any stock exchange in Canada and thus, Osum is not subject to regulation by any Canadian stock exchange. Our securities are also not registered under the United States Securities Act of 1933 nor are they traded on any securities or stock exchange in the United States. As a result, we are not presently subject to the reporting, certification or other requirements imposed on U.S. registered issuers under, among other things, U.S. Sarbanes-Oxley Act of 2002 (“SOX”).
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