Calgary – Following a comprehensive review by the Energy Resources Conservation Board (ERCB), Osum Oil Sands Corp (Osum) has received notice that the Company’s application for the development of a 35,000 barrel per day 100% owned thermal project at Cold Lake (Taiga) has been approved. The Taiga project has been assigned 359 million barrels of proved plus probable reserves.
“Regulatory approval of the Taiga Project is a significant milestone for Osum on our path to full-scale operated commercial production.” said Steve Spence, Osum’s President & Chief Executive Officer. “Taiga is about unlocking the potential of people, communities and resources, and this news moves us one step closer to doing exactly that.”
With regulatory approval now in hand, the timing of development is under evaluation.
The construction of Taiga will require additional sources of financing and Osum is currently evaluating funding alternatives that will position the project for approval by Osum’s Board.
The application goes next to the Lieutenant Governor in Council for final approval.
The Taiga Project is located in the prolific Cold Lake region of Alberta adjacent to some of the largest thermal projects in Canada. The project has been assigned 359 million barrels of proved plus probable reserves and 105 million barrels of best estimate contingent resource, which may support up to 45,000 barrels per day of production for over 30 years.
For more information on the Taiga Project, visit our website at www.osumcorp.com
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 development 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.
Cautionary Information and Forward Looking Statements
Certain statements contained in this press release 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.
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.
Disclosure of Reserves and Resources
Instrument 51-101 (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook.
Under NI 51-101, proved reserves are those reserves which can be estimated with a high degree of certainty to be recoverable. It is 90 percent likely that actual remaining quantities will exceed estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of proved plus probable reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is only a 10 percent probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be sub classified based on project maturity and/or characterized by their economic status. Resource estimates are described as follows: Best Estimate – This is considered to be the best estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.; High Estimate – This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate. Low estimate – this is considered to be a conservative estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, the term reflects a P90 confidence level. Contingent resources were assigned in regions with lower core-hole drilling density than the reserve regions and are outside current areas of application for development. These resource estimates are not classified as reserves at this time, pending further reservoir delineation, project application, facility and reservoir design work. Contingent resources entail commercial risk not applicable to reserves, which have not been included in the net present valuation. There is no certainty that it will be commercially viable to produce any portion of the contingent resources.