Company looks forward to demonstrating benefits to community.
Calgary, Alberta – Osum Oil Sands Corp. (“Osum” or the “Company”) has received notice that the Energy Resources Conservation Board (“ERCB”) has scheduled a hearing for May 23, 2012 in respect of its Taiga Project application. The application, submitted in December of 2009, seeks approval to produce up to 35,000 barrels of bitumen per day through in-situ thermal extraction methods (which use wells and involve no strip mining or tailings ponds).
The Taiga Project will not use fresh water in its production process, instead relying on undrinkable brackish water from a deep aquifer in the region. As well, water recycling technologies with efficiencies of greater than 90% will be used, and cogeneration will be implemented in the second phase of the development to increase the project’s energy efficiency, enabling it to become almost entirely self-sufficient in terms of its electricity requirements.
“We are tremendously excited to move ahead with our Taiga project and are eager to demonstrate the benefits of the project to the surrounding communities and to the province as a whole,” said Osum President and CEO, Steve Spence, “We take an active interest in the concerns and opinions of our neighbours and look forward to continuing our discussions with them to find solutions that work the best for everyone.”
Osum has been engaged in consultation efforts relating to the Taiga project since 2008 and continues to work with area residents and invest in the community. During this time, the company has made significant changes to its proposed development as a result of ongoing dialogue with local stakeholders, including moving the location of the central processing facility and well pad placements.
In recent weeks, the Municipal District of Bonnyville, the City of Cold Lake and the Town of Bonnyville have all sent letters of support to the provincial government. Osum has also received letters of non-objection from several of its First Nations neighbours in the area.
“The news of a date for the hearing is a positive development which moves the application along an established process and clarifies some of the uncertainty for supply chain partners, potential employees, shareholders and community partners,” said the Company’s EVP of Development and Operations, Rick Walsh. “Having a greater understanding of where we are in the process will enable us to share a more reliable blueprint of our path forward with our vendors and community partners,”
The Cold Lake area currently yields approximately 340,000 barrels of oil per day (over 10 per cent of Canada’s oil production) and is known for crude that is lighter and higher in quality than in the Athabasca region.
Stakeholders who are interested in attending the hearing are invited to contact the ERCB or visit their website for details.
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 3.46 Billion barrels. With a family of world class shareholders, including Warburg Pincus, Blackstone Capital Partners, Korea Investment Corporation, KERN Partners, Government of Singapore Investment Corporation, two large Canadian institutional investors, BlackRock Financial Management, Goldman Sachs and Camcor Partners, Osum has raised over $1 Billion in private equity to date.
For more information, visit our website 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, that the conditions and timing to closing set out in the Investment Agreement will be satisfied, the credit quality of the counterparties to the warrants, as well as assumptions relating to machinery development or production delays, changing environmental regulations, the ability to obtain regulatory approval for our projects, 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”).
This release is provided for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares in any jurisdiction (including the United States) in which such offer, solicitation or sale would be unlawful.
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