Sunshine Oilsands Announces Strategic Financial Plans for Second Quarter of 2014

 Sunshine Oilsands Announces Strategic Financial Plans for Second Quarter of  2014  CALGARY, Alberta and HONG KONG, April 6, 2014 /CNW/ - Sunshine Oilsands Ltd.  (the "Corporation" or "Sunshine") (HKEX: 2012; TSX: SUO) today announced its  strategic financial plans outline for the second quarter of 2014.  Strategic and Financial Plans  Sunshine's activities in examining strategic and financing alternatives remain  ongoing. As a priority, the Corporation is actively progressing focused  initiatives to secure financing to recommence construction on its first West  Ells 10,000 bbl/d commercial Steam Assisted Gravity Drainage ("SAGD") project.  Establishing production in the West Ells area is an important initiative that  sets the foundation for the long term production plans in the West Ells  project area, an area in which the Corporation has estimated that modular  phase production increases have the potential to achieve commercial production  of approximately 110,000 bbls/d production capacity. Financing initiatives are  focused on considering debt and equity-linked alternatives as well as joint  ventures, farm-outs, asset sales and sale lease-back transactions.  Sunshine  is pleased to confirm that it is examining financing alternatives with the  assistance of its financial advisors. Sunshine will disclose the details of  specific financing initiatives when the Board of Directors approves a specific  transaction or otherwise determines that disclosure is required.  The Corporation cautions that there can be no assurances or guarantees that  its activities will result in any financing transaction or other transaction  or, if such financing or other transaction is undertaken, there can be no  assurances or guarantees as to the terms or timing of such a transaction.  In a showing of support for the strategic and financing initiatives, the Board  of Directors is pleased to confirm that all Directors of Sunshine have agreed  to accept 50% of their Board retainer compensation in the form of shares of  the Corporation, and the Co-Chairmen have also agreed to accept 50% of their  contract compensation in form of shares of the Corporation.  Such  compensation, and the number of shares to be issued for previously earned  retainer amounts following the end of the current trading black-out period,  shall be determined in compliance with the Listing Rules, the rules of the  TSX, and shall be subject to approval by the HKEX, the TSX as well as any  necessary shareholder approvals.  Blackout Period  The Corporation confirms that it remains in a trading "black-out" for all  persons that are subject to the Corporation's Corporate Disclosure and Trading  Policy.  This "black-out" has been in effect since August 6, 2013 and is  expected to continue until current financing initiatives and the strategic  alternatives review process is fully completed.  Completed Financings  Since December 1, 2013, Sunshine completed and closed private placements for  aggregate gross proceeds totaling HK$489.7 million (approximately CAD$68.7  million).  The proceeds enabled the Corporation to repay vendors 45% of the  amount owed when West Ells activities were suspended. All vendors, which  include litigants, first lien holders and general creditors, were paid the  same proportion of outstanding invoices.  As disclosed in the results  announcement of Sunshine dated March 26,2014 and the most recent Annual  Information Form ("AIF), Sunshine, with unanimous agreement from current lien  holders and litigants, reached a collective forbearance agreement with all  lien holders and litigants initially until February 28, 2014. This forbearance  period was subsequently extended by collective agreement with all lien holders  and litigants until May 31, 2014.  With cooperation from key vendors, the  Corporation is actively moving forward with planning for recommencing  construction at the West Ells 10,000 bbl/d commercial SAGD project area.  Special General Meeting to be held on April 15, 2014  In an initiative aimed at facilitating commitment and closing of additional  equity or equity-linked financings, a Special General Meeting of shareholders  is to be held on April 15, 2014. Shareholders are being asked to refresh the  20% equity issuance mandate to allow Sunshine to allot and issue Shares up to  a maximum of twenty percent (20%) of its aggregate issued and outstanding  share capital.  The Go-Forward Plan  Once financing is secured, it is Sunshine's intention to move rapidly, using  the experienced engineering, field operations and drilling and completions  teams, to recommence construction at West Ells, with the goal of achieving  first steam late in 2014. The corporation has retained high performing staff  in all key areas required to support construction recommencement. The staff  count is approximately 120 employees and consultants that meet the desired  performance standards and includes staffing in all key operations, support  roles and in commissioning and startup functions related to West Ells. The  Corporation is determined to ensure that we leave no room for future excuses  about cost controls and operations metrics since we intend to establish a  strong base-line for long term, sustainable production growth and cash flow as  we complete the West Ells project and become a producing energy company.  Comments from the Co-Chairmen, Mr. Michael Hibberd and Mr. Songning Shen  "We have gone through a determined and intense effort to address internal  management leadership matters.  In view of the challenges we have faced, we  are hugely impressed by the manner in which those challenges have been  examined and addressed by our Board of Directors and our staff. Our new  management team has made changes to our internal cost controls and capital  allocations processes aimed at ensuring that go-forward budget and capital  management requirements for 2014 are addressed in a rigorous manner. We  already have, and remain committed to retaining, highly skilled financial  management and technical teams with a track record of 'on time, on budget'  project delivery. After financing initiatives are completed, the Board of  Directors intends to appoint a full-time Chief Financial Officer to assume the  CFO functions and the Board of Directors will formally address assignment of  permanent key leadership titles. We can assure all of our shareholders that  the Board of Directors remains fully committed to addressing the interests of  our shareholders. This, combined with the commitment by our highly skilled  management and technical teams and the support shown by our vendors and  contractors, sets the backbone for our determination to push the West Ells  project forward."  This press release is not an offer of the Common Shares for sale in the United  States. The Common Shares have not been, and will not be, registered under the  United States Securities Act of 1933, as amended and may not be offered or  sold in the United States absent registration or an exemption from the  registration requirements thereof. This press release shall not constitute an  offer to sell or the solicitation of an offer to buy, nor shall there be any  sale of these securities, in any jurisdiction in which such offer,  solicitation or sale would be unlawful.  FORWARD-LOOKING INFORMATION AND DISCLAIMER  This announcement contains forward-looking information relating to, among  other things: (a) the future financial performance and objectives of Sunshine;  and (b) the plans and expectations of the Corporation.  Such forward-looking  information 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 words such as "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 announcement 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 the AIF, "Risk Management" in our  current MD&A for the year ended December 31, 2013 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, on the SEDAR website at or our website at  In addition, information and statements in this announcement relating to  "reserves" and "resources" are deemed to be forward-looking information, as  they involve the implied assessment, based on certain estimates and  assumptions, that the reserves and resources described exist in the quantities  predicted or estimated, and that the reserves and resources described can be  profitably produced in the future. The assumptions relating to Sunshine's  reserves and resources are contained in the reports of GLJ Petroleum  Consultants Ltd. and DeGolyer and MacNaughton Canada Limited, each dated  effective December 31, 2013.  For additional information regarding the  specific contingencies which prevent the classification of Sunshine's  contingent resources as reserves see "Statement of Reserves Data and Other Oil  and Gas information" in our most recent AIF.  The estimates of reserves and  future net revenue for individual properties in this announcement may not  reflect the same confidence level as estimates of reserves and future net  revenue for all properties, due to the effects of aggregation.  "Contingent  Resources" has the meaning given to that term in the AIF.  About Sunshine Oilsands Ltd.  Sunshine is a Calgary based public company, listed on the SEHK since March 1,  2012 and the Toronto Stock Exchange since November 16, 2012. Sunshine is  focused on the development of its significant holdings of oil sands leases in  the Athabasca oil sands region. The Corporation owns interests in  approximately one million acres of oil sands and P&NG leases in the Athabasca  region. The Corporation is currently focused on executing milestone  undertakings in the West Ells project area.  West Ells has an initial  production target rate of 5,000 barrels per day, which will be followed  immediately by an approved expansion to a planned production capacity of  10,000 barrels per day. In addition to West Ells activities, Sunshine has  received regulatory approval to the Thickwood 10,000 barrels per day SAGD  project and has an additional 10,000 barrels per day application in regulatory  review for Legend.    SOURCE  Sunshine Oilsands Ltd.  Tiffany Chan, +852-9716-2447,,  To view this news release in HTML formatting, please use the following URL:  CO: Sunshine Oilsands Ltd. NI: MNG UTI OIL LOAN MNA  
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