Sunshine Oilsands Ltd. Announces Transaction Outline Letter for Muskwa and
CALGARY, Alberta, Sept. 25, 2013 /CNW/ - Sunshine Oilsands Ltd. ("Sunshine" or
the "Corporation") (HKEX: 2012, TSX: SUO) is pleased to confirm that further
to its August 19, 2013 announcement, discussions and negotiations have
advanced and it has now signed a non-legally binding Transaction Outline
Letter with the same international third party to pursue a joint venture
involving its Muskwa and Godin area oil sands leases. The Transaction Outline
Letter provides for a 50 - 50 joint venture pursuant to which the third party
will be responsible for investing 100% of the capital of up to US$250 million,
and an affiliate of the third party will agree to apply a thermal enhanced
recovery technology, to achieve production of 5,000 barrels per day from the
Corporation's oil sands leases in the Muskwa and Godin areas. After this
capital commitment or production threshold is achieved, the joint venture
parties will contribute in proportion to their ownership positions.
In addition, Sunshine and the third party have completed an non-legally
binding Operating Agreement Term Sheet that outlines the main terms for a
definitive operating agreement for the joint venture that Sunshine expects
will be completed in the near future.
Sunshine's board of directors (the "Board") is pleased that the potential and
opportunity in our Muskwa and Godin areas has been recognized through this
significant proposal to provide both capital and technology.
The joint venture is subject to certain conditions and the entering into of
binding agreements. The Board wishes to emphasize that such binding agreement
may or may not proceed. In the event that any formal agreements are entered
into, the joint venture may constitute a notifiable transaction for the
Company under the Listing Rules and the Company will make announcement(s) as
and when appropriate. Shareholders and potential investors are urged to
exercise caution when dealing in the securities of the Company.
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 evaluation, 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 Ltd.
CONTACTS: 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, Website:
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CO: Sunshine Oilsands Ltd.
NI: UTI OIL ORDER VNT
-0- Sep/26/2013 01:40 GMT
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