Press release from CNW Group
Joint Venture Framework Agreement for Muskwa and Godin Areas Temporary Slow Down of West Ells Project
Sunday, August 18, 2013
Joint Venture Framework Agreement for Muskwa and Godin Areas Temporary Slow Down of West Ells Project21:00 EDT Sunday, August 18, 2013
Joint Venture Framework Agreement for Muskwa and Godin Areas
CALGARY, Alberta, Aug. 18, 2013 /CNW/ - Sunshine Oilsands Ltd. ("Sunshine" or the "Corporation") (HKEX: 2012, TSX: SUO) is pleased to announce that it has entered into a Framework Agreement with an international third party to pursue a joint venture involving its Muskwa and Godin area oilsands leases. The Framework Agreement provides for a 50 - 50 joint venture pursuant to which the third party will be responsible for investing up to $250 million, and contribute a thermal enhanced recovery technology, to achieve production of 5,000 barrels per day from the oilsands leases. After this production threshold is achieved, the joint venture parties will contribute in proportion to their ownership positions. The joint venture is subject to certain conditions and the entering into of binding agreements. Sunshine's Board of Directors is pleased that the opportunity in our Muskwa and Godin areas has been recognized through this significant proposal to provide both capital and technology.
Temporary Slow Down of West Ells Project
Sunshine announces that some of the work on the West Ells Project site near Fort McMurray has been temporarily slowed down. This work is expected to ramp up again once confirmation is received that additional funding has been committed. Sunshine is maintaining staff at site to continue with reduced work activities and to ensure safety of the worksite. President and CEO John Zahary said: "We are confident that Sunshine's extensive asset base and very advanced first project at West Ells will enable us to obtain commitments for necessary funding. The effect of the work slow down on West Ells schedules and costs will be outlined after the funding is committed."
ABOUT SUNSHINE OILSANDS LTD.
Sunshine Oilsands Ltd. is one of the largest non-partnered holders of oil sands leases by area in the Athabasca oil sands region, which is located in the province of Alberta, Canada. Since the Company's incorporation on 22 February 2007, Sunshine has secured over one million acres of oil sands leases (equal to approximately 7% of all granted leases in this area).
The Company's principal operations are the exploration, development and production of its diverse portfolio of oil sands leases. Its principal operating regions in the Athabasca area are at West Ells, Thickwood, Legend Lake, Harper, Muskwa, Goffer, Pelican and Portage. Sunshine's oil sands leases are grouped into three main asset categories: clastics, carbonates and conventional heavy oil.
FORWARD-LOOKING INFORMATION AND DISCLAIMER
This announcement may contain forward-looking information that is subject to various risks, uncertainties and other factors. All statements other than statements and information of historical fact are forward-looking statements. The use of any words "estimate", "forecast", "expect", "project", "plan", "target", "vision", "goal", "outlook", "may", "will", "should", "believe", "intend", "anticipate", "potential", and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on Sunshine's experience, current beliefs, assumptions, information and perception of historical trends available to Sunshine, and are subject to a variety of risks and uncertainties including, but not limited to those associated with resource definition and expected reserves and contingent and prospective resources estimates, unanticipated costs and expenses, regulatory approval, fluctuating oil and gas prices, expected future production, the ability to access sufficient capital to finance future development and credit risks, changes in Alberta's regulatory framework, including changes to regulatory approval process and land-use designations, royalty, tax, environmental, greenhouse gas, carbon and other laws or regulations and the impact thereof and the costs associated with compliance. Although Sunshine believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this information release are not exhaustive and readers are not to place undue reliance on forward-looking statements as our actual results may differ materially from those expressed or implied. Sunshine disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this announcement, except as required under applicable securities legislation. The forward-looking statements speak only as of the date of this announcement and are expressly qualified by these cautionary statements. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. For a full discussion of our material risk factors, see "Risk Factors" in our most recent Annual Information Form, "Risk Management" in our current MD&A and risk factors described in other documents we file from time to time with securities regulatory authorities, all of which are available on the Hong Kong Stock Exchange at www.hkexnews.hk, on the SEDAR website at www.sedar.com or our website at www.sunshineoilsands.com.
This announcement does not constitute and is not an offer to sell or a solicitation of an offer to buy common shares of the Company in the United States (including its territories and possessions, any State of the United States and the District of Columbia) or elsewhere.
SOURCE: Sunshine Oilsands Limited
For further information:
Sunshine Oilsands Ltd., Mr. John Zahary, President & CEO, Tel: +1-403-930-5836; Mr. David Sealock, Executive VP, Corporate Operations, Tel: +1-403-984-1446, Email: email@example.com