Press Release by Osum Oil Sands Corp.

Calgary, Alberta – In a press release issued on March 13, 2013, Osum Oil Sands Corp. (“Osum” or “the Company”) announced the results of its December 31, 2012 independent reserves and resources evaluation. The evaluation was prepared by GLJ Petroleum Consultants Ltd. (“GLJ”), a leading independent reserve evaluator engaged to evaluate all of Osum’s project areas in accordance with National Instrument 51-101 (“NI 51-101”) and the Canadian Oil and Gas Evaluation Handbook (“COGEH”). The result was a report (“the GLJ Report”) that assigned a total of 4.4 billion barrels of best estimate contingent resources and 410 million barrels of probable undeveloped reserves to the Company’s properties. The estimate of probable undeveloped reserves included 51 million barrels in the Grosmont carbonates assigned to a portion of the Company’s acreage in its Saleski Joint Venture project area (“the Saleski JV Reserves”).

Subsequent to the date of the GLJ Report, on May 29, 2013, the Alberta Securities Commission (“ASC”) issued Staff Notice 51-702 (the “Staff Notice”) in respect of the certainty levels associated with the estimation and classification of oil and gas reserves and resources based on ASC staff’s interpretation of COGEH. Osum is consulting with GLJ to understand the implications of the Staff Notice, including the potential effect on future evaluations. However, based on management’s preliminary understanding, ASC staff’s interpretation as set out in the Staff Notice could result in the reclassification of the Saleski JV Reserves (12% of the Company’s total reserves) to best estimate contingent resources. The Staff Notice has no bearing on the Company’s remaining 359 million barrels of probable undeveloped reserves, or its 4.4 billion barrels of best estimate contingent resources.

About Osum Oil Sands

Osum Oil Sands Corp. 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

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 management’s current views with respect to future events or conditions, including prospective results of operations, petroleum reserves and resources, changes to legislation or policy, actions by the ASC, conclusions of management concerning the Staff Notice, financial position, predictions of future actions or plans or strategies.

Certain material factors and assumptions were applied in drawing conclusions and making 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, assumptions about possible future legislation, policy and actions by the ASC in connection with the statements in the Staff Notice or otherwise, machinery development or production delays, changing environmental and other regulations, the ability to attract and retain business partners, the ability to exploit hydrocarbon resources with available technology, the need to obtain and maintain proprietary rights over aspects of the technology, competition from other technologies, the ability to access the capital required for project development, 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 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 the projections or forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Osum does not intend and does not assume any obligation to update these forward-looking statements whether as a result of new information, plans, events or otherwise.

The Company’s securities are not traded on any stock exchange and thus, Osum is not subject to regulation by any Canadian stock exchange. Osum is not a reporting issuer in Canada and its securities are not registered under the United States Securities Act of 1933. As a result, the Company is not presently subject to the reporting, certification or other requirements imposed on Canadian Reporting Issuers or U.S. registered issuers under, among other things, applicable Canadian securities legislation or the U.S. Sarbanes-Oxley Act of 2002 (“SOX”).

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. All heavy oil volumes reported herein refer to bitumen.

In the GLJ Report a portion of the recoverable bitumen volumes in the Taiga-Cold Lake and Saleski Joint Venture properties, where the Company or its partner has applied for construction of bitumen recovery schemes, are classified as reserves. The remaining recoverable bitumen volumes are classified as contingent or prospective resources, not reserves, pending further delineation, facility design, regulatory application, firm development plans and Company approvals. In the case of the carbonate properties other than the area of the Saleski Joint Venture to which reserves are assigned, development also may be contingent upon successful application of steam assisted gravity drainage (SAGD) or cyclic steam stimulation (CSS) technology in those carbonate reservoirs. The contingent and prospective resources have been assessed using the same fiscal conditions applicable in the assessment of reserves and, as such, these volumes are considered economically recoverable. There is however, no certainty that it will be commercially viable to produce any of the contingent or prospective resources.

In determining the valuation estimates contained in the GLJ Report, the following pricing forecast was utilized:

GLJ Forecast Pricing
Light and Medium Crude Oil
Exchange Rate
WSC Stream Quality at Hardisty Current
Natural Gas
Inflation Rate
WTI at Cushing Oklahoma
Alberta Spot at Plant
Gate (Cdn$/mmbtu)


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 of the Company in any jurisdiction (including the United States) in which such offer, solicitation or sale would be unlawful.


Christi Millar
Communications Advisor

Recent News

  1. Waterous Energy Fund announces the final step of its acquisition of Osum Oil Sands Corp; shareholder meeting to be held April 30, 2021 to approve the transaction

  2. Waterous Energy Fund Announces Successful Take-Over Bid for Osum Oil Sands Corp., Commencement of Mandatory 10-Day Tender Extension Period, and Voluntary Resignation of Osum Directors and Officers

  3. Osum Board Withdraws its Recommendation that Shareholders Reject the Offer from Waterous Energy Fund

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