Rick George Appointed Chairman of Osum Oil Sands
CALGARY, ALBERTA--(Marketwire - Nov. 5, 2012) -
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Osum Oil Sands Corp ("Osum" or "the Company") is pleased to announce that Mr. Richard L. (Rick) George, OC, has been appointed Chairman of the Board of Directors of the Company. Rick was the President and CEO of Suncor Energy from 1991 until 2012 and is widely regarded as one of the pioneers of Canada's Oil Sands. Under Rick's leadership, Suncor grew from a valuation of $1 billion to a market capitalization of more than $50 billion, making it Canada's largest energy company and one of the top five publicly traded companies in the country.
"We are extremely happy to welcome Rick George to our Board of Directors." commented Steve Spence, Osum's President & CEO. "His deep understanding of the oil sands sector and wealth of experience gained from building a successful, world class energy company are unmatched. Rick will provide unique and invaluable insights as we develop our assets, both in Cold Lake with our Taiga project and in the Saleski carbonates."
During his twenty-one years as Chief Executive Officer, Suncor was consistently a leader in resource capture and development and was known for recognizing opportunity ahead of its peers. An example of this was the company's decision to aggressively invest in oil sands development in the late 1990's when oil prices were approaching $10 per barrel and expected to fall further.
In recognition of his exemplary leadership and vision, Mr. George has received a myriad of awards. Among them are Canada's Outstanding CEO (1999), Canadian Business Leader Award (2000), Alberta Business Person of the Year (2001),and Officer of the Order of Canada (2007) for his contribution to Canada's energy resource development.
"I look forward to this opportunity to work alongside Osum's exceptional management team and board of directors." Mr. George stated. "Osum has positioned itself at the forefront of what I believe is the next significant chapter in Canada's in situ oil sands - the Saleski Grosmont carbonates. I am excited that I will be playing a part in the commercialization of this vast resource and will have a role in building a company that I expect will become a leader in the industry."
Mr. George also serves as a director on the boards of Anadarko Petroleum Corporation and the Royal Bank of Canada.
Osum and its Board of Directors would also like to extend a gracious thank you to Mr. Richard Todd, who stepped down from Osum's board to allow Mr. George to join. Mr. Todd was CEO and Chairman of Osum from 2006 to 2010 and then a director from 2010 to present. Mr. Todd played a vital and integral leadership role in bringing Osum from a virtual standing start to the thriving development company that it is today.
Osum continues to advance its asset portfolio of 3.5 billion barrels of best estimate contingent resource and 359 million barrels of proved and probable reserves toward commercial development. The initial phases of the 45,000 barrel per day Taiga project in the Cold Lake area received regulatory approval from the Energy Resources Conservation Board in September of this year and preparation for the initial commercial phase is well underway with first production expected by 2016. At Saleski, the thermal pilot in the carbonates continues to show positive results and planning for its expansion with a 10,700 barrel per day (gross) commercial demonstration stage is nearing completion with sanction expected in 2013. In addition, filing of an Environmental Impact Assessment for Osum's 100% owned and operated 60,000 barrel per day commercial project at Saleski East is expected to be filed with the regulators in early 2013. In total, Osum's asset base at Cold Lake and Saleski has the potential to support projects producing 390,000 barrel per day.
Osum is a privately held Alberta based company focused on the application of environmentally responsible in situ recovery technologies within Canada's oil sands and carbonates. Additional information on the Company is available at www.osumcorp.com.
Cautionary Information and Forward Looking Statements
Certain statements contained in this press release may contain projections and "forward-looking statements" within the meaning of that phrase under Canadian and U.S. securities laws. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions may be used to identify forward-looking statements. Those statements reflect our current views with respect to future events or conditions, including prospective results of operations, financial position, predictions of future actions or plans or strategies.
Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying our projections or forward-looking statements prove incorrect, our actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements whether as a result of new information, plans, events or otherwise.
Our securities are not traded on any stock exchange in Canada and thus, Osum is not subject to regulation by any Canadian stock exchange. Our securities are also not registered under the United States Securities Act of 1933 nor are they traded on any securities or stock exchange in the United States. As a result, we are not presently subject to the reporting, certification or other requirements imposed on U.S. registered issuers under, among other things, U.S. Sarbanes-Oxley Act of 2002 ("SOX").
This release is provided for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares in any jurisdiction (including the United States) in which such offer, solicitation or sale would be unlawful.
Disclosure of Reserves and Resources
Instrument 51-101 (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook. Under NI 51-101, proved reserves are those reserves which can be estimated with a high degree of certainty to be recoverable. It is 90 percent likely that actual remaining quantities will exceed estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of proved plus probable reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is only a 10 percent probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be sub classified based on project maturity and/or characterized by their economic status. Resource estimates are described as follows: Best Estimate - This is considered to be the best estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.; High Estimate - This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate. Low estimate - this is considered to be a conservative estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, the term reflects a P90 confidence level. Contingent resources were assigned in regions with lower core-hole drilling density than the reserve regions and are outside current areas of application for development. These resource estimates are not classified as reserves at this time, pending further reservoir delineation, project application, facility and reservoir design work. Contingent resources entail commercial risk not applicable to reserves, which have not been included in the net present valuation. There is no certainty that it will be commercially viable to produce any portion of the contingent resources.
FOR FURTHER INFORMATION PLEASE CONTACT:
Osum Oil Sands Corp