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  
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