CALGARY, Oct. 1, 2018 /CNW/ - Osum Oil Sands Corp., a private oil sands company, today provided an update on expansion activities at its Orion Thermal Project, located in the Cold Lake oil sands region of Alberta.
Over the last 12 months, Osum has sanctioned and successfully completed both its Phase 2B and Phase 2C expansions. These scopes, executed concurrently, were completed ahead of schedule and under budget. The expanded plant facility is fully operational with current performance in line with expectations. Average production for the third quarter exceeded 11,000 barrels per day, a more than 30 per cent increase over the second quarter. The increase in average production reflects lower than expected declines from existing wells along with earlier than forecast contribution from six of 18 new well pairs. The projected exit rate for 2018 has been raised by 27 per cent to 14,000 barrels per day.
Commenting on the expansion, Steve Spence, President and CEO of Osum said, "I would like to thank our staff and contractors for their efforts to bring this expansion to successful completion. I am proud of the efficient and effective track record we have set in delivering Phases 2A through 2C on time and within budget. We anticipate hitting 18,000 barrels per day by the end of Q3 2019, three months earlier than our previous forecast. We are well positioned to maintain our growth trajectory, potentially pursuing additional expansion opportunities in 2019."
Osum is planning a Phase 2D expansion that will bring average daily production at Orion to over 20,000 barrels per day. The Company also has regulatory approval for its 35,000 barrel per day Taiga Project, a greenfield development located less than twenty kilometres from Orion.
About Osum:
Established in Alberta in 2005, Osum Oil Sands Corp. is a private oil sands producer focused on the responsible application of in-situ recovery technologies within Canada's oil sands and carbonates. Additional information on the company is available at www.osumcorp.com.
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", "project" and similar expressions, may be used to identify forward-looking statements. Forward-looking statements in this press release may include, but are not limited to, expected declines, 2018 projected exit rate, expected production in Q3 2019 and the anticipated Orion Phase 2D expansion and resulting production increase. 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 expected cash flows, expected production levels or conditions, expected economic life of the Orion Thermal Project, retaining a high quality, experienced management and operating team, 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, financial position, predictions of future actions or plans or strategies, and 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, projected 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, except as required by law.
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 anywhere 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 reporting issuers in Canada or U.S. securities legislation including U.S. registered issuers under, among other things, applicable Canadian securities legislation or the U.S. Sarbanes-Oxley Act of 2002. 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.
SOURCE Osum Oil Sands Corp.
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Christi Clouter, Osum Oil Sands Corp., cclouter@osumcorp.comCopyright CNW Group 2018
