US Oil Sands Inc. Announces PR Spring Project Update, 2016 Year End Filings and 2017 Annual General and Special Meeting
US Oil Sands Inc. ("US Oil Sands" or the "Company") (TSX VENTURE:USO), an innovator of oil extraction technologies, announces that the Company has initiated a nine-phase start-up plan of the PR Spring Project (the "Project").
"We are pleased to announce that US Oil Sands has initiated the start-up sequence for our PR Spring Project," said Cameron Todd, CEO of US Oil Sands. "As we work through this carefully staged start-up plan, we look forward to soon achieving first-oil on this first commercial oil sands mining and solvent extraction process."
The Company also announces that it has filed its independent evaluation of bitumen contingent resources as of December 31, 2016 and its audited consolidated financial statements for the twelve-month period ended December 31, 2016 ("Financial Report") along with the management discussion and analysis of the financial results of US Oil Sands for such period.
Copies of the aforementioned documents are available 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.
PR SPRING PROJECT UPDATE
Following completion of financing in January, Project work was re-initiated in February. Equipment commissioning and mining operations then followed. The Company has now commenced a nine-phase start-up plan. Through this process, systems and equipment are being tested and calibrated. Water, followed by clean solids, and finally mined oil sands are being successively introduced. As first-oil is produced, plant and material balances will be monitored and throughput will be gradually increased. Through the second quarter, the Company expects to optimize operations, targeting a safe and efficient recovery of bitumen, the recycle of water and solvent, and the deposition of clean solids back to the mine for reclamation.
RESOURCE EVALUATION REPORT
The Company engaged Calgary-based McDaniel & Associates Consultants Ltd. ("McDaniel") to complete an independent resource evaluation report dated December 31, 2016 (the "McDaniel Report") in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
A portion of the Company's resources have been assigned a Contingent Resource classification with a risked value (NPV10 best estimate) of C$73 million on recovery of 9.6 MMbbls (from Discovered Petroleum (Bitumen) Initially-In-Place of 12.5 MMbbls) on the Company's 316 acre permitted PR Spring development area.
The remaining 5,614 acres of PR Spring land have resources that have been previously evaluated by an independent resource evaluator, subsequently audited by McDaniel and classified as Discovered Petroleum (Bitumen) Initially-In-Place totalling 171.8 MMbbls with the entire PR Spring lease assigned 184.3 MMbbls of Discovered Petroleum (Bitumen) Initially-In-Place, as reported in previous years.
US Oil Sands' PR Spring property lies within the State of Utah's PR Spring Special Tar Sand Area and consists of three leases that encompass 5,930 acres. The Company also holds leases on an additional 26,075 acres that have only been minimally explored and therefore, not evaluated in the McDaniel Report. US Oil Sands currently holds 100% working interest in its Utah-based assets.
SOURCE: US Oil Sands Inc.
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