Sunshine Oilsands Ltd. Announces Supplemental Report on Reserves Data and Other Oil and Gas Information in Respect of its West

Sunshine Oilsands Ltd. Announces Supplemental Report on Reserves Data and 
Other Oil and Gas Information in Respect of its West Ells Project Area 
(HKEX: 2012; TSX: SUO) 
CALGARY and HONG KONG, June 4, 2014 /CNW/ - Sunshine Oilsands Ltd. ("Sunshine" 
or the "Corporation") (HKEX: 2012, TSX: SUO) is pleased to announce that it 
has received a supplemental independent reserves evaluation report (the 
"Supplemental Report") in respect of those four sections of oil sands lands 
within its West Ells SAGD project area for which it has obtained initial 
regulatory approval (the "West Ells Project Area").  The West Ells Project 
Area is the portion of the larger West Ells development area in which Sunshine 
anticipates pursuing its core initial development activities. 
The Supplemental Report was prepared by GLJ Petroleum Consultants Ltd. ("GLJ") 
in accordance with the requirements of the Canadian Oil and Gas Evaluation 
Handbook ("COGE Handbook") with an effective date of April 30, 2014 and 
updates and supplements the independent reserves evaluation report prepared by 
GLJ with an effective date of December 31, 2013 (the "Year End Report") 
summarized in the Corporation's annual information form for the year ended 
December 31, 2013 (the "AIF"). 
The Supplemental Report does not replace or supersede the Year End Report, but 
rather updates the Year End Report on the basis of a revised steam facility 
design and updated operating parameters for the initial 16 well pairs in the 
West Ells Project Area. 
Sunshine updated its operating parameters following a review of peer operating 
parameters in the Athabasca oil sands region of Alberta subsequent to the Year 
End Report.  Such updated operating parameters include anticipated increased 
steam capacity to over 37,000 barrels per day, injection pressure for the 
initial 16 well pairs in the West Ells Project Area and revised peak rate of 
these wells to 610 barrels per day.  Additionally, the Supplemental Report was 
prepared on the basis of GLJ's updated benchmark pricing as at April 1, 2014 
and effective April 30, 2014. 
Although the Supplemental Report does not attribute any changes in the volumes 
of Proved Undeveloped or Proved Plus Probable Undeveloped reserves in respect 
of the Project Area, the Supplemental Report does provide increases in the net 
present value of future revenues, discounted at 10%, ("NPV10") for such 
reserves as compared to the reserves values for the West Ells development area 
disclosed in the Year End Report.  The NPV10 value of Proved Undeveloped 
reserves reported in the Supplemental Report for the Project Area was CDN $290 
million compared to CDN $249 million in the Year End Report for the West Ells 
development Area, an increase of approximately 16%.   The NPV10 value of 
Proved Plus Probable Undeveloped reserves reported in the Supplemental Report 
for the Project Area was CDN $449 million compared to CDN $360 million in the 
Year End Report for the West Ells Development Area, an increase of 
approximately 25%. 
Summary of Reserves and Values 
The table below summarizes the Corporation's reserves including the value of 
future net revenue of the Corporation from (i) the West Ells Project Area 
reserves as at April 30, 2014, in the case of the Supplemental Report; and 
(ii) the West Ells development area as at December 31, 2013, in the case of 
the Year End Report; in each case, as evaluated by GLJ. 
Please note that the reserve evaluations in the Supplemental Report and 
disclosed below do not consider all of Sunshine's reserves in the West Ells 
development area.  Rather, the Supplemental Report focuses entirely on the 
West Ells Project Area. 
The reserves data disclosed below in respect of the Year End Report does not 
consider all of Sunshine's reserves across all of its properties.  Rather, the 
Year End Report values disclosed below are derived from the Year End Report 
solely with respect to the West Ells development area. 
As such, the reserve values disclosed below in respect of the Supplemental 
Report and Year End Report do not reflect the total reserve values of Sunshine 
for all of its properties. 


                             Bitumen
                             Supplemental Report Year End Report
    Reserves Category        (Project Area)(1)   (West Ells)(2)
                             Gross   Net         Gross   Net
                                     (Mbbl)
                             (Mbbl)              (Mbbl)  (Mbbl)
    PROVED(3)
     Producing               -       -           -       -
     Developed Non-producing -       -           -       -
     Undeveloped             74,205  64,326      79,080  69,073
    TOTAL PROVED             74,205  64,326      79,080  69,073
    TOTAL PROBABLE           43,439  34,551      61,005  49,778
    TOTAL PROVED PLUS        117,644 98,877      140,085 118,851
    PROBABLE
    (1) The Supplemental Report only covers reserves evaluated for the
    West Ells Project Area. The reserves for the portion of West Ells
    evaluated did not change from the 2013 Year End report to the
    Supplemental Report.
    (2) Values disclosed herein for the Year End Report are solely
    with respect to the West Ells development area.
    (3) The Corporation has no developed proved producing reserves and
    no developed non-producing reserves. All of the Corporation's
    reserves are undeveloped reserves.
                             Net Present Values of Future Net Revenue(4)
                             Before Income Taxes Discounted At (% per year)
    Reserves Category
                             0%    5%    10%   15%   20%
                             (MM$) (MM$) (MM$) (MM$) (MM$)
    Supplemental Report
    (Project Area)(1)
    PROVED(2)
     Producing               -     -     -     -     -
     Developed Non-producing -     -     -     -     -
     Undeveloped             1,525 671   290   101   -
    TOTAL PROVED             1,525 671   290   101   -
    TOTAL PROBABLE           1,470 416   159   84    56
    TOTAL PROVED PLUS        2,995 1,087 449   185   56
    PROBABLE
    Year End Report
    (West Ells)(3)
    PROVED(2)
     Producing               -     -     -     -     -
     Developed Non-producing -     -     -     -     -
     Undeveloped             1,616 637   249   74    (14)
    TOTAL PROVED             1,616 637   249   74    (14)
    TOTAL PROBABLE           2,074 392   111   51    35
    TOTAL PROVED PLUS        3,690 1,029 360   125   21
    PROBABLE
    (1) The Supplemental Report only covers reserves evaluated for the West
    Ells Project Area. The reserves for the portion of West Ells evaluated
    did not change from the 2013 Year End report to the Supplemental
    Report.
    (2) The Corporation has no developed proved producing reserves and no
    developed non-producing reserves. All of the Corporation's reserves are
    undeveloped reserves.
    (3) Values disclosed herein for the Year End Report are solely with
    respect to the West Ells development area.
    (4) Estimated values of net present value do not represent fair market
    value.
       Total Future Net Revenue (Undiscounted)
    Forecast Prices and Costs as of April 30, 2014
    (for West Ells Project Area)
                                                      Abandonment Future
                                          Capital                 Net
              Revenue Royalties Operating Development and         Revenue
    Reserves                    Costs     Costs       Reclamation Before
    Category  (MM$)   (MM$)                           Costs       Income
                                (MM$)     (MM$)                   Taxes
                                                      (MM$)
                                                                  (MM$)
    Total     5,714   778       1,904     1,467       40          1,525
    Proved(1)
    Total
    Proved
    Plus      10.189  1,667     3,087     2,639       71          2,995
    Probable
    (1)
    (1) In respect of the West Ells Project Area. The Supplemental Report
    only covers reserves evaluated for the West Ells Project Area. The
    reserves for the portion of West Ells evaluated did not change from
    the 2013 Year End report to the Supplemental Report.

GLJ Pricing Forecast Effective April 30, 2014

The price forecast used in the GLJ reserves assessment that formed the basis 
for the revenue projections and net present value estimates in the 
Supplemental Report was based on GLJ's April 1, 2014 pricing forecast with an 
effective date of April 30, 2014.  A summary of this price forecast is set 
forth below.
                                               WCS      Heavy    Dilbit
          Oilfield  Exchange WTI      Edm. Oil Heavy    Oil 12   at       NYMEX     Edmonton
    Year  Costs     1        @Cushing Edmonton Oil      API      Hardisty Henry Hub Pentanes
          Inflation USD/CAD  $US/bbl  Light    Hardisty Hardisty Current  Current   Plus
          %                           $/bbl    $/bbl    $/bbl    $        US$/Mmbtu $/bbl
                                                                 Cdn/bbl
    2014  2         0.9000   97.50    102.78   84.79    75.31    78.79    4.40      113.06
    Q2-Q4
    2015  2         0.9000   97.50    102.78   84.79    75.31    79.29    4.50      113.06
    2016  2         0.9000   97.50    105.56   87.08    78.33    82.08    4.75      112.94
    2017  2         0.9000   97.50    105.56   87.08    78.33    82.58    5.00      112.94
    2018  2         0.9000   97.50    105.56   87.08    78.33    83.08    5.25      112.94
    2019  2         0.9000   97.50    105.56   87.08    78.33    83.00    5.50      112.94
    2020  2         0.9000   98.54    106.37   87.75    78.93    83.59    5.63      113.81
    2021  2         0.9000   100.51   108.49   89.50    80.53    85.26    5.74      116.08
    2022  2         0.9000   102.52   110.66   91.29    82.14    86.96    5.85      118.40
    2023  2         0.9000   104.57   112.87   93.12    83.78    88.70    5.97      120.77
    2024+ 2         0.9000   escalate oil, gas and product prices at 2%
                             per year thereafter

D&M Pricing Forecast Effective December 31, 2013

The price forecast used in the GLJ reserves assessment that formed the basis 
for the revenue projections and net present value estimates in the Year End 
Report was based on DeGolyer and McNaughton Canada Limited's January 1, 2014 
pricing forecast with an effective date of December 31, 2013.  A summary of 
this price forecast is set forth below.
                                               WCS      Heavy               NYMEX
          Oilfield  Exchange WTI      Edm. Oil Crude    Oil 12   Dilbit @   Henry   Edmonton
    Year  Costs     1        @Cushing Edmonton Oil      API      35%        Hub     Pentanes
          Inflation USD/CAD  $US/bbl  Light    Stream   Hardisty Condensate Current Plus
          %                           $/bbl    at       $/bbl    $/bbl      US$/Mcf $/bbl
                                               Hardisty
    2014  2         0.96     94.00    93.23    76.46    69.93    74.80      4.20    100.69
    2015  2         0.96     91.80    90.85    74.49    68.14    72.89      4.40    98.12
    2016  2         0.96     93.64    92.67    75.99    69.50    74.35      4.75    100.08
    2017  2         0.96     95.51    94.52    77.51    70.89    75.83      5.10    102.08
    2018  2         0.96     97.42    96.41    79.06    72.31    77.35      5.45    104.12
    2019  2         0.96     99.37    98.34    80.63    73.75    78.90      5.56    106.21
    2020  2         0.96     101.35   100.31   82.25    75.23    80.48      5.67    108.33
    2021  2         0.96     103.38   102.31   83.89    76.73    82.09      5.78    110.50
    2022  2         0.96     105.45   104.36   85.57    78.27    83.73      5.90    112.71
    2023  2         0.96     107.56   106.45   87.28    79.83    85.40      6.02    114.96
    2024  2         0.96     109.71   108.57   89.03    81.43    87.11      6.14    117.26
    2025  2         0.96     111.90   110.75   90.81    83.06    88.85      6.26    119.61
    2026+ Escalate oil, gas and product prices at 2% thereafter

For further information regarding Sunshine's reserves data (including 
Sunshine's total evaluated reserves), the Year End Report and other oil and 
gas information in respect of Sunshine, please see "Statement of Reserves Data 
and Other Oil and Gas Information" in the AIF and Schedules "A" and "B" to the 
AIF.

Please refer to the section headed "About Sunshine Oilsands Ltd." below and 
the Corporation's 2013 Annual Report dated April 22, 2014 for further details 
about the West Ells SAGD project.

NOTICE REGARDING PRESENTATION OF RESERVES DATA AND TECHNICAL TERMS

Disclosure in this announcement of reserves data and other oil and gas 
information is presented in accordance with National Instrument 51-101 -- 
Standards of Disclosure for Oil and Gas Activities (''NI 51-101'') and the 
COGE Handbook.  Certain terms describing reserves and other oil and natural 
gas information used herein are defined below. Certain other terms and 
abbreviations used in this announcement, but not defined or described, are 
defined in NI 51-101 or the COGE Handbook and, unless the context otherwise 
requires, shall have the same meanings herein as in NI 51-101 or the COGE 
Handbook.

In this announcement, the abbreviations set forth below have the following 
meanings:
    Oil and Natural Gas Liquids Natural Gas
    bbls barrels                Mmbtu million British Thermal Units
    Mbbl thousand bbls
    Mcf  thousand cubic feet
                                Other
    WTI  West Texas Intermediate, a common reference grade of crude oil in
         the United States

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.

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 the 
Corporation's 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 the 
Corporation's material risk factors, see the AIF and risk factors described in 
other documents the Corporation files 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 the 
Corporation's website at www.sunshineoilsands.com.

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 the AIF.

ABOUT SUNSHINE OILSANDS LTD.

The Corporation is a Calgary based public corporation, listed on the Hong Kong 
Stock Exchange since March 1, 2012 and the Toronto Stock Exchange since 
November 16, 2012. The Corporation 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 SAGD project area.  West 
Ells has an initial production target rate of 5,000 barrels per day, which 
Sunshine expects 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, the Corporation has received regulatory approval for 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. 
Mr. David Sealock, Interim President & CEO, Tel: (1) 403 984 1446, Email: 
investorrelations@sunshineoilsands.com,  Website: www.sunshineoilsands.com 
http://www.sunshineoilsands.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/June2014/04/c8373.html 
CO: Sunshine Oilsands Ltd.
NI: UTI OIL  
-0- Jun/04/2014 11:09 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.