Sunshine Oilsands Ltd. Receives Approval of Primary Recover Scheme for Muskwa Project Area
Calgary, Alberta; January 18 2010 - Sunshine Oilsands Ltd., ("Sunshine" or the "Company"), is pleased to announce that the Muskwa Primary Recovery Scheme Application # 1624506 has been approved by the ERCB. The ERCB approval number is 11382.
Mr. Brown, the Company's Co-CEO & COO, stated, "We're excited about this approval. We've been watching the competition closely this winter and have seen some very positive results offsetting our lands. We're going to be drilling inside this scheme in a few weeks and expect some more good news. Our development plan in Muskwa is based on this bitumen behaving very much like conventional heavy oil. There is a lot of volume coming out of the area without thermal stimulation and the Company has big plans for this business unit after our initial wells confirm fluid mobility." The Company's development plan calls for primary recovery from horizontal wells. "We can expand this scheme quickly as results dictate. It's a very important first step."
The approved scheme, consisting of up to 16 horizontal and 4 vertical wells, will have potential capability to produce up to 172 m3/day (1,080 bbls/day) oil without expanding the scheme.
About Sunshine Oilsands
Sunshine Oilsands Ltd. is a Calgary based company engaged in the development of its significant holdings (1 million acres) of in-situ oil sands deposits in the Athabasca region in Alberta.
The Company's initial development plans include a conventional heavy oil project and exploitation of its SAGD cretaceous sandstone land areas. Sunshine's initial adjudicated resource report, which was based on 58 core holes encompassing 396 sections, attributed 9.4 Billion barrels of original bitumen in place, 2.5 Billion barrels high case gross lease recoverable resources and 1.4 Billion best case gross lease recoverable resources.
Co-CEO & COO
Advisory Respecting Forward-Looking Statements:
This news release contains certain forward-looking information and statements. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release may contain forward-looking information and statements pertaining to the following: the in-situ pilot, the reserve report, recognition of the Company's contingent resources, the Company's development plans, the Company's production potential and life span thereof; the timing and amount of estimated production; costs of production; capital expenditures; construction time lines; currency exchange rate fluctuations; environmental risks; unanticipated reclamation expenses; risk of obtaining regulatory approvals; engineering and design risk; fluctuation in commodity prices, operational challenges and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.
The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below:
- General economic, market and business conditions in jurisdictions relevant to the Company's business;
- Access to capital;
- Volatility on market prices for oil;
- Liabilities inherent in oil sands operations;
- Uncertainties associated with estimating oil sands resources and reserves;
- Competition for, among other things, capital, acquisitions of resources and reserves, leases and skilled personnel;
- Incorrect assessments of the value of acquisitions and the likelihood of success of exploration and development programs;
- Geological, technical, drilling and processing problems;
- Change in tax laws and incentive programs relating to oil and natural gas industry;
- Changes in Government regulations;
- Failure to obtain regulatory, industry partner and third party consents and approvals where required;
- Fluctuations in foreign exchange or interest rates and stock market volatility; and
- Failure to realize the anticipated benefits of acquisitions.
The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revise them to reflect new events or circumstances except as may be required by applicable laws.