CALGARY,
Aug. 15, 2013 /CNW/ - US Oil Sands
Inc. ("US Oil Sands" or the "Company") (TSXV: USO), a
company focused on oil sands exploration and production in
Utah, today announced that it has
filed its unaudited interim financial statements ("Interim
Report") for the three month period ended June 30, 2013 along with the management
discussion and analysis ("MD&A") of the financial
results of US Oil Sands for such period.
A copy of the aforementioned documents may be
found for viewing on the System for Electronic Document Analysis
and Retrieval website at www.sedar.com as well as US Oil Sands'
website at www.usoilsandsinc.com.
SELECTED OPERATIONAL & FINANCIAL
HIGHLIGHTS
- Continued progression of the 5,930 acre oil sands development
project, including initiation of mine site clearing, water pumping
installation, ore optimization, and testing and development of
detailed mine and facilities engineering;
- Supply of water and raw road-building materials for
Uintah County's Seep Ridge Road
Paving Project, a state-funded project that will serve the general
public, ranchers, recreationalists, and the energy industry.
Revenues therefrom will partially offset future capital costs
associated with mine opening and water supply infrastructure;
- Continuation of outreach efforts to Utah-based government officials, business
leaders, and communities; and
- Progressed PR Spring Project Joint Venture discussions with
select parties.
"During the second quarter we were primarily
focused on initiating site work as well as finalizing the
engineering design of our PR Spring Project. We have also made good
strides in our discussions with key parties engaged in our ongoing
process of pursuing a JV financing agreement," said Cameron Todd, CEO of US Oil Sands. "From an
operational perspective, we anticipate commercial start-up of the
initial phase of our project to commence in late 2014 however this
of course is dependent on the timing of our financing."
OPERATIONAL HIGHLIGHTS
During the second quarter the Company continued
to work with its engineering consultants and equipment suppliers to
complete final engineering design. Mine planning activities
continued to identify and plan expansion areas.
The Company also entered into an agreement to
supply water and raw materials in Uintah
County, Utah for a state-funded road building project. The
44 mile project will serve the general public, ranchers,
recreationalists, and the energy industry. In relation thereto, the
Company permitted and mobilized a man-camp to support field
operations and acquired and installed pumping equipment to bring
the production water well to operational status.
REGULATORY HIGHLIGHTS
On January 14,
2013, the Board of Directors of the Utah Division of Oil,
Gas and Mining ("DOGM") voted to support DOGM's previous approval
of the Company's Notice of Intention to Commence Large Mining
Operations at its PR Spring Project Area. The timeframe within
which an appeal can be made has expired, and accordingly, DOGM's
issuance of the Company's Notice of Intention to Commence Large
Mining Operations at its PR Spring Project Area is final and fully
in-force.
As of the date hereof, the November 1, 2012 decision by the Utah Department of Environmental Quality's
Water Quality Board to support the Company's permit-by-rule as
previously issued by the Division of Water Quality on March 4, 2008 is in appeal to the Utah Supreme
Court by a Utah-based
environmental organization. Appeals cannot introduce new evidence
and are heard only on the basis of technicalities of law.
There are no other challenges or appeals against
the Company or the regulatory agencies on any regulatory permits
held by the Company in respect of its planned operations for the PR
Spring Project Area.
OUTLOOK
For the remainder of 2013, the Company will
continue to focus on the final engineering and procurement of
equipment for site preparation and construction of the PR Spring
Project Area. Management anticipates fabrication of the process
extraction plant to commence in 2013, with final fabrication, field
assembly and commercial start-up expected to occur in 2014. The
timing of these plans is to a large degree dependent on when the
Company raises the capital necessary to undertake the major
expenditures. With the assistance of external corporate finance
support, US Oil Sands continues the process of marketing and
closing a joint venture financing.
Management intends to continue its pursuit of
opportunities to add additional resource lands by assessing growth
opportunities and furthering regulatory application efforts that
ensure a ready inventory of future mineable assets for the
Company.
ABOUT US OIL SANDS LTD.
US Oil Sands is engaged in the exploration and
development of oil sands properties and, through its wholly owned
United States subsidiary US Oil
Sands (Utah) Inc., has a 100%
interest in bitumen leases covering 32,005 acres of land in
Utah's Uinta basin. The Company
plans to develop its oil sands properties using its proprietary
extraction process which uses a bio-solvent to extract bitumen from
oil sands without the need for tailings ponds. The Company is in
the pre-production stage, anticipating the commencement of bitumen
production and sales in 2014.
The foregoing information contains
forward-looking information relating to the future performance of
the Company including information relating to the development and
construction of the PR Spring Project, commencement of commercial
production, resource estimates, target production levels and joint
venture financing arrangements. Forward looking information is
subject to a number of known and unknown risks, uncertainties and
other factors that may cause actual results to differ materially
from those anticipated in our forward looking statements. Such
risks and other factors include, among others, the actual results
of exploration activities, changes in world commodity markets or
equity markets, the risks of the petroleum industry including,
without limitation, those associated with the environment, delays
in obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, title
disputes, change in government and changes to regulations affecting
the oil and gas industry, and other risks and uncertainties
detailed from time to time in the Company's filings with the
Canadian securities administrators (available at www.SEDAR.com).
Forward-looking statements are made based on various assumptions
and on management's beliefs, estimates and opinions on the date the
statements are made. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
in the forward-looking information contained herein. The Company
undertakes no obligation to update forward-looking statements if
these assumptions, beliefs, estimates and opinions or other
circumstances should change, except as required by applicable
law.
Discovered bitumen resources or discovered
bitumen initially-in-place is that quantity of bitumen that is
estimated, as of a given date, to be contained in known
accumulations on Company lands prior to production. There is no
certainty that it will be commercially viable to produce any
portion of the resources. Additional information relating to
resource estimates is contained in the Company's Statement of
Resources Data and Other Oil and Gas Information for the year ended
December 31, 2012 dated April 29, 2013 and available on SEDAR at
www.sedar.com.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE US Oil Sands Inc.