|By PR Newswire||
|November 13, 2012 09:00 PM EST||
HONG KONG, Nov. 13, 2012 /PRNewswire/ -- Sunshine Oilsands Ltd. (the "Corporation" or "Sunshine", HK: 2012) today is pleased to announce its unaudited interim financial results for the three and nine month periods ended September 30, 2012. All figures are in Canadian dollars unless otherwise stated. Please see the attached announcement for further information.
Operational Update - Third Quarter of 2012:
Sunshine is a major holder and developer of oil sands resources, with approximately 70 billion barrels of total Petroleum Initially In Place ("PIIP"). The Corporation is focused on development of these assets with the first phase of a 10,000 barrels per day project, currently under construction at West Ells, scheduled for start up in mid 2013. Sunshine is also progressing regulatory approvals for two additional 10,000 barrels per day (total 20,000 barrels per day) projects at Thickwood and Legend Lake. Approvals are expected in the first half of 2013. With over 4.96 billion barrels of contingent resources and 445 million barrels of proved plus probable ("2P") reserves, the Corporation has significant commercial development potential. In addition, Sunshine has recently updated its commercial development plans in the West Ells, Thickwood and Legend Lake areas and is now targeting over 300,000 barrels per day of production from these areas, representing a 50% increase in previously announced commercial production targets.
West Ells Development
As of September 30, 2012, $110.9 million has been incurred for West Ells equipment, engineering, construction, civil works, drilling, completions and other project related expenditures. The Project is currently on schedule and on budget for completion. The Corporation estimates total capital investment for its West Ells 100,000 barrels project to approximate $3.5 billion. Sunshine remains focused on West Ells Phase One construction, which has an initial production rate of 5,000 barrels per day, followed by an already approved expansion to the planned production capacity of 10,000 barrels per day. First steam is expected to commence in mid-2013 and first production is expected in the fourth quarter of 2013.
The access road to West Ells is now complete and ready for heavy hauls. This will ensure that project milestones are met and that the project will be completed on schedule for first steam in mid 2013. Subsequent to quarter end, on October 10, 2012, pilings for the Central Process Facility ("CPF") commenced. As well, some of the major equipment, including a gas turbine generator and an evaporator was in transit to marshalling yards. Other major equipment still to be received includes steam generators, free water knockout, pumps, and heat exchangers. Civil construction of the CPF is approximately 40% finished, with facilities general engineering approximately 75% complete.
In addition to the road and CPF, the first of Well Pad 2 SAGD well pairs spudded on October 29, 2012. The camp is fully functional, and the borrow pits are complete and in use. For capital commitments, 100% of the long lead equipment has been ordered and approximately 80% of the secondary long lead equipment has been procured. Phase 1 downhole completion and production equipment have been ordered and drilling rigs arrived on August 20, 2012. Drilling rigs for the observation wells were mobilized and were spudded on October 26, 2012. No major delays have been encountered.
Thickwood and Legend Lake
In addition to the progress made on the 10,000 barrel per day project applications approvals for both the Thickwood and Legend Lake projects, the Corporation has progressed the Front End Engineering and Design ("FEED") for Thickwood. This work is approximately 10% complete. In addition, detailed baseline environmental data collection is ongoing and is expected to be completed by the end of 2012. This work provides information required for project applications larger than 12,000 barrels per day in anticipation of future commercial development plans.
Cold flow assets
The Corporation continues with the exploration and development of its Muskwa heavy oil assets. As at September 30, 2012, five pads with 39 development wells have produced a cumulative total of approximately 305,000 barrels. Muskwa cumulative production for the first 9 months of 2012 is barrels approximately 168,000, representing an average of 625 barrels per day. The Corporation continued production optimization activities in the Muskwa field by implementing new technologies and techniques for enhancing production, sand clean out and other types of wellbore stimulations. The Corporation also commenced construction of its planned pad extension to accommodate future drilling. The Corporation received regulatory approval to install electric heaters on two horizontal wellbores at its Muskwa operations. Field work commenced late in the summer and is scheduled to be completed in mid-fourth quarter of 2012. Muskwa remains in the resource definition stage for the Corporation's financial reporting purposes. As a result, the Corporation capitalizes all costs incurred to date including operating costs net of revenues.
The Board of Directors of the Corporation is pleased to announce the results of the Corporation and its wholly-owned subsidiaries for the three and nine month periods ended September 30, 2012 together with comparative figures for the corresponding period in 2011 as follows:
President's Message to Shareholders
We are pleased to present to you the unaudited interim financial results including the interim financial statements and management's discussion and analysis of Sunshine Oilsands Ltd. ("Sunshine") for the three and nine months ended September 30, 2012. This report presents a discussion of key highlights for the first nine months of 2012, a performance update, summary comments on developments and our 2013 outlook.
We would like to extend our sincere gratitude to you, our shareholders, for your continued support and interest in Sunshine. At Sunshine, we believe we have the assets and experience to continue to pursue significant value-added opportunities. We continue to focus on executing milestone undertakings in the West Ells project area, where first steam is scheduled for mid-2013. West Ells has an initial production target rate of 5,000 barrels per day, which will be followed by an approved expansion to a planned production capacity of 10,000 barrels per day. In addition to West Ells activities, Sunshine is progressing regulatory approvals for two additional 10,000 barrels per day projects, one in Thickwood and one in Legend Lake.
At the start of the third quarter, we released the results of our updated independently prepared Reserves and Resource Reports (the "Reserves and Resource Reports"). These reports, dated May 31, 2012, were prepared by GLJ Petroleum Consultants Ltd. and DeGolyer and MacNaughton Canada Limited and the results confirmed a substantial increase in our recognized reserves and resources base.
Main highlights of the independently prepared Reserves and Resource Reports include the following:
- 69 billion barrels of Total Petroleum Initially In Place ("PIIP"),
- 5 billion barrels of Best Estimate Contingent Resources with an aggregate pre-tax PV10% value of $6.9 billion (increase of 1.9 billion barrels representing 63% growth);
- 80 million barrels of proved ("1P") reserves with an aggregate pre-tax PV10% value of $312 million (increase of 78 million barrels);
- 445 million barrels of proved plus probable ("2P") reserves with an aggregate pre-tax PV10% value of $918 million (increase of 26 million barrels); and
- 603 million barrels of proved plus probable plus possible ("3P") reserves with an aggregate pre-tax PV10% of $1.6 billion (increase of 42 million barrels).
The Reserves and Resources Reports confirmed significant increases in PIIP and Best Estimate Contingent Resource recognition in both the clastics and carbonates categories. PIIP recognition increased by approximately 24 billion barrels to approximately 69 billion barrels. Clastics Best Estimate Contingent Resource recognition increased by 1.2 billion barrels to 3.6 billion barrels primarily due to the Corporation's drilling program in its core areas of Harper, Opportunity and Pelican Lake. Carbonates Best Estimate Contingent Resource recognition increased in the core areas of Goffer, Muskwa and Portage, adding over 700 million barrels. Based on this, our current share price is trading at a significant discount to our PV10% resource and reserves value. At a 10% discount rate for 2P and Best Estimate Contingent Resource before taxes, this equates to approximately HK$21.40 per share.
During the third quarter, development of our first phase Steam Assisted Gravity Drainage ("SAGD") project at West Ells progressed well. Activities throughout the summer and increasing through the fall period continued to advance construction and development at the West Ells site. The access road was completed as were the borrow pits. Our camp is now fully functional. Pilings for the Central Process Facility commenced on October 10, 2012. In addition, following quarter end, some of the major equipment was in transit to marshalling yards. Drilling rigs for the observation wells were mobilized and our first SAGD well pair was spudded subsequent to quarter end on October 29, 2012. No major delays have been encountered in our planned West Ells construction schedule.
Thickwood and Legend Lake continue to advance through the regulatory process with approvals currently expected by mid-2013 for an initial10,000 barrels per day of production in each area.
The successful completion of the initial public offering ("IPO") on March 1, 2012 and the Listing on the Stock Exchange of Hong Kong Limited have been significant achievements. Sunshine raised gross proceeds of HK$4.5 billion (approximately $570 million) and secured significant investments from cornerstone investors. With this financing, we secured a financial platform that validates our business intent to develop our large oil sands asset base.
Subsequent to the end of the third quarter, the Corporation successfully secured a $200 million credit facility with a syndicate of financial institutions, led by Alberta Treasury Branches and Bank of China (Canada). This oversubscribed facility was expanded from its original size due to strong support from financial institutions that included Bank of America N.A., Canada Branch, HSBC Bank Canada, Morgan Stanley Senior Funding, Inc., Scotiabank, Toronto-Dominion Bank, UBS AG Canada Branch and Industrial and Commercial Bank of China (Canada). This credit facility positions the Corporation well to complete construction of the West Ells project, to fund front end costs of the Thickwood project and to advance program and regulatory development to expand capacity for the West Ells, Thickwood and Legend Lake projects.
During September, the Corporation commenced a share buyback program that ran from September 16 to October 12, 2012. During that time, the Corporation repurchased approximately 61 million shares. Sunshine continues with an active investor relations effort throughout Asia, North America and globally. We continue to emphasize the attractiveness of the Corporation's value in communications with existing shareholders and with potential new shareholders. In order to increase the incentive for North American shareholders to buy our stock, we applied and obtained conditional approval to list our Class "A" common voting shares on the Toronto Stock Exchange.
Joint Venture Initiatives
Joint venture discussions continued during the third quarter. We are pleased to confirm that we are continuing to work with Sinopec International Petroleum Exploration and Production Corporation, with whom we have a Memorandum of Understanding for strategic cooperation, as well as other parties who have expressed interest for involvement in our development of our attractive assets. We look forward to reporting details of matured joint venture discussions in a timely manner.
The Corporation consistently maintains a disciplined approach in health, safety and environmental issues and remains committed to operating in a socially responsible manner with regularly conducted emergency response training, and safety and environmental audits of our operating facilities. We had no significant incidents to report during the third quarter of 2012.
Sunshine also remains committed to working with local stakeholders as we build an organization that is intended to be meaningful in a global context.
Sunshine has recently updated its commercial development plans in the West Ells, Thickwood and Legend Lake areas and is now targeting over 300,000 barrels per day of production from these areas, representing a 50% increase in previously announced commercial production targets.
With approximately 70 billion barrels of PIIP, Sunshine has a significant presence in the north-western part of the Athabasca oil sands region that represents an opportunity for investors seeking value growth. Our outlook for the remainder of 2012 and looking ahead to 2013 is one of significant promise. With over 4.96 billion barrels of contingent resources and 445 million barrels of 2P reserves, Sunshine has significant commercial development potential with considerable upside. We are confident that our internal development and evaluation efforts complemented with broadening the market's understanding of Sunshine's assets, will result in share price appreciation over time. We continue to work towards first steam at West Ells by mid-2013. Production from West Ells will provide immediate cash flows to re-invest in our other planned capital projects, Thickwood and Legend Lake. This should, combined with anticipated expansion applications and approvals for our projects, increase probable and proved reserves, which are typically ascribed to higher values in active markets.
Sunshine has achieved several milestones during the first nine months of 2012. These would not have been possible without the committed efforts of our Board of Directors and our dedicated, hard-working employees. We will continue to seek out and attract talented people to sustain a high level of excellence in execution of our corporate development plans. We believe in the immense potential of our asset base and understand that to increase shareholder value, we need to remain disciplined and focused on project milestones and within our financial means. We look forward to a busy winter season and are excited by the potential of our planned development projects.
President and Chief Executive Officer
November 14, 2012
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 464,897 hectares (1,148,785 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.
For further enquiries, please contact:
Sunshine Oilsands Ltd.
Mr. John Zahary
Mr. David Sealock
President & CEO
Executive VP, Corporate Operations
Email: [email protected]
SOURCE Sunshine Oilsands Ltd.
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Mar. 29, 2015 03:30 PM EDT Reads: 2,159
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dr...
Mar. 29, 2015 03:00 PM EDT Reads: 2,803
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
Mar. 29, 2015 03:00 PM EDT Reads: 3,435
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Mar. 29, 2015 02:00 PM EDT Reads: 1,568
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
Mar. 29, 2015 01:45 PM EDT Reads: 4,657
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
Mar. 29, 2015 12:00 PM EDT Reads: 743
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
Mar. 29, 2015 12:00 PM EDT Reads: 1,439
The list of ‘new paradigm’ technologies that now surrounds us appears to be at an all time high. From cloud computing and Big Data analytics to Bring Your Own Device (BYOD) and the Internet of Things (IoT), today we have to deal with what the industry likes to call ‘paradigm shifts’ at every level of IT. This is disruption; of course, we understand that – change is almost always disruptive.
Mar. 29, 2015 11:45 AM EDT Reads: 1,093
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
Mar. 29, 2015 11:00 AM EDT Reads: 2,086
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
Mar. 29, 2015 11:00 AM EDT Reads: 1,407
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
Mar. 29, 2015 09:00 AM EDT Reads: 1,390
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
Mar. 29, 2015 08:30 AM EDT Reads: 2,048
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
Mar. 29, 2015 01:00 AM EDT Reads: 1,457
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Mar. 28, 2015 08:00 PM EDT Reads: 1,793
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
Mar. 28, 2015 07:00 PM EDT Reads: 5,187
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.
Mar. 28, 2015 06:00 PM EDT Reads: 1,828
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Mar. 28, 2015 06:00 PM EDT Reads: 1,461
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
Mar. 28, 2015 04:15 PM EDT Reads: 2,419
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Things. Akana enables enterprises to share data as APIs, connect and integrate applications, drive part...
Mar. 28, 2015 04:15 PM EDT Reads: 1,537
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. Join SoftLayer on June 9 at 16th Cloud Expo to learn about IBM Cloud's SoftLayer platform, explore se...
Mar. 28, 2015 02:00 PM EDT Reads: 1,633