US Oil Sands plans another restart in Utah
Calgary-based US Oil Sands has closed on previously announced US$7.5 million in financing, obtained from its largest shareholder (ACMO) at a 15% annualized interest rate. As part of the company's refinancing deal, three of its board members have been replaced with ACMO representatives.
The funds will allow the company to restart its PR Spring demo project early in 2017.
The company says commissioning will resume sometime this month as employees and contractors are brought back to site in a staged basis. Commissioning is expected to be completed sometime in the first quarter. US Oil Sands says it wants to avoid starting up the facility in the coldest winter months.
Construction of PR Spring was halted in early 2016 due to lack of working capital, then restarted in late spring after issuing almost $13 million in new shares. Construction was stopped again in the fall when the company ran out of cash for a second time.
The company has patented a proprietary extraction process which uses a citrus bio-solvent to extract bitumen from oil sands without the need for tailings ponds. PR Spring is located in the Uinta Basin in northeastern Utah. Phase 1 is expected to produce 2,000 bbl/day of bitumen, which is slightly lighter and lower in sulphur than Alberta's Athabasca bitumen. In late 2016, the commercial demo plant had an estimated capital cost of $64 million.
US OIL SANDS CORPORATE PRESENTATION SEP 2016