Osum moves Taiga Project another step toward production

Posted: Jul. 18, 2012

Cold Lake, Alberta – Following the withdrawal of objection from Cold Lake First Nations (CLFN), Osum Oil Sands Corp. will move ahead with the development of its Taiga oil sands project.  CLFN was the only official intervener in a regulatory hearing that commenced today to review Osum’s application to construct and operate a thermal in-situ oil sands project in the Cold Lake area.

“We are very pleased with Cold Lake First Nations’ decision to withdraw their objection, and we’re excited to move forward and deliver an outstanding project that will benefit the region for decades to come.” said Rick Walsh, Osum’s Chief Operating Officer.

The project will move forward once official approval from the provincial government is obtained.  Construction of the first phase is targeted to get underway in 2013 with first production anticipated in 2016.  The second phase of the project will effectively double Taiga’s capacity and will include a cogeneration unit, making the project among the most energy efficient of its kind.

Osum has committed to continue engaging stakeholders, including those who have further questions regarding the Taiga Project, in spite of the fact that the hearing has ended early.  “We’re confident that we have a first-rate project that will raise the bar for our industry, and we take great pride in sharing the Taiga story, how it will benefit the community and how oil sands development benefits all Canadians” Mr. Walsh stated.

To build a close relationship with the Company’s neighbors, Osum has been in the Cold Lake area for four years engaging in extensive consultation with surrounding communities and Aboriginal groups.  The company has incorporated the concerns and feedback of local residents into the Taiga Project design, modifying some of its original plans to better accommodate the needs of its neighbors.

The Company has been working with Cold Lake First Nations to develop opportunities for their members to participate in the project, while preserving their ability to carry on traditional activities on the leasehold throughout the life of the Taiga Project.

The Taiga project will be a key element in Osum’s growth plans, projected to produce as much as 45,000 bpd when fully ‘built out’.  With Taiga, Osum has made significant strides toward improving industry best practices including using a comprehensive 3D seismic program which enhances geological understanding of the reservoir and aids well planning activities, achieving zero fresh water use for steam generation, and designing to exceed numerous regulatory standards and to minimize impacts.

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About Osum
Osum’s mission is to unlock Canada’s unrealized bitumen resource potential. The Company is pursuing commercial in situ developments in the established Cold Lake area of Alberta and in the Grosmont carbonate trend, where it is a leader with a stake in a producing pilot and plans for the first full scale project in the region. The company has been assigned proven plus probable reserves of 359 Million barrels and Best Estimate Contingent Resources of 3.54 Billion barrels.

For further information, please contact:
Christi Millar
cmillar@osumcorp.com 

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