OPTI Canada Inc.
TSX : OPC

OPTI Canada Inc.

June 30, 2009 23:59 ET

OPTI Announces Successful Repricing of Equity Offering

CALGARY, ALBERTA--(Marketwire - June 30, 2009) -

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES/

OPTI Canada Inc. (TSX:OPC) ("OPTI" or the "Company") today announced that it has successfully repriced its previously announced public offering (the "Offering) of common shares (the "Common Shares"). Pursuant to the Offering, OPTI will issue 85,720,000 Common Shares at a price of $1.75 per share, representing a premium of $0.05 per share or approximately 2.9% to OPTI's previously announced price of $1.70 per share, for total gross proceeds of approximately $150 million. The Offering was conducted through a syndicate of underwriters led by TD Securities Inc., Credit Suisse Securities (Canada), Inc. and RBC Capital Markets as joint bookrunners, together with Scotia Capital Inc., CIBC World Markets Inc., FirstEnergy Capital Corp., HSBC Securities (Canada) Inc. and National Bank Financial Inc. (the "Underwriters"). Pursuant to the terms of the Offering, OPTI has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 12,858,000 Common Shares, exercisable at any time, in whole or in part, up to 30 days from the closing of the Offering. If the over-allotment option is exercised in full, a total of 98,578,000 Common Shares will be sold under the Offering for total gross proceeds of approximately $173 million. Upon closing of the Offering, and not including Common Shares issuable pursuant to the over-allotment option, the Company will have 281,749,526 Common Shares (288,876,042 Common Shares on a fully diluted basis) issued and outstanding.

The Offering is scheduled to close on or about July 14, 2009, and is subject to certain customary conditions and regulatory approvals. The Offering has received conditional listing approval from the Toronto Stock Exchange ("TSX"), subject to customary conditions. Shareholder approval is not one of the conditions required by the TSX.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction outside of Canada, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares offered have not been, and will not be, registered under the 1933 Act, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

About OPTI

OPTI is a Calgary, Alberta-based company focused on developing major oil sands projects in Canada using its proprietary OrCrude™ process. OPTI's first project, Phase 1 of the Long Lake Project, consists of 72,000 barrels per day of SAGD oil production integrated with an upgrading facility. The Upgrader uses the OrCrude™ process combined with commercially available hydrocracking and gasification. Through gasification, this configuration substantially reduces the exposure to and the need to purchase natural gas. On a 100 percent basis, the Long Lake Project is expected to produce 58,500 bbl/d of products, primarily 39 degree API Premium Sweet Crude with low sulphur content, making it a highly desirable refinery feedstock. Due to its premium characteristics, OPTI expects PSC™ to sell at a price similar to West Texas Intermediate (WTI) crude oil. The Long Lake Project is a joint venture with the Operator, Nexen Inc. OPTI holds a 35 percent working interest in the joint venture. OPTI's common shares trade on the Toronto Stock Exchange under the symbol OPC.

Additional information regarding the Long Lake Project is available at http://www.longlake.ca.

Forward-Looking Statements

Certain statements contained herein are forward-looking statements, including statements relating to OPTI's financing plans; OPTI's operations, business prospects, expansion plans and strategies; OPTI's plans and expectations concerning the use and performance of the OrCrude™ process and other related technologies; the cost, development and operation of the Long Lake Project and OPTI's relationship with Nexen Inc. Forward-looking information typically contains statements with words such as "intends," "anticipate," "estimate," "expect," "potential," "could," "plan" or similar words suggesting future outcomes. Readers are cautioned not to place undue reliance on forward-looking information because it is possible that expectations, predictions, forecasts, projections and other forms of forward-looking information will not be achieved by OPTI. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties. A change in any one of these factors could cause actual events or results to differ materially from those projected in the forward-looking information. Although OPTI believes that the expectations reflected in such forward-looking statements are reasonable, OPTI can give no assurance that such expectations will prove to be correct. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by OPTI and described in the forward-looking statements or information including the risk that OPTI may not be able to satisfy the covenants or conditions of its credit facilities and the potential accelerated repayment of such credit facilities and its senior secured notes. The forward-looking statements are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified herein, OPTI has made assumptions regarding, among other things: market costs and other variables affecting operating costs of the Project; the ability of the Long Lake joint venture partners to obtain equipment, services and supplies, including labour, in a timely and cost-effective manner; the availability and costs of financing; oil prices and market price for the PSC™ output of the OrCrude™ Upgrader; foreign currency exchange rates and hedging risks; government regulations and royalty regimes; the degree of risk that governmental approvals may be delayed or withheld; other risks and uncertainties described elsewhere in this document or in OPTI's other filings with Canadian securities authorities.

Readers should be aware that the list of factors, risks and uncertainties set forth above are not exhaustive. Readers should refer to OPTI's current Annual Information Form and Management's Discussion and Analysis for the three months ended March 31, 2009 both of which are available at www.sedar.com, for a detailed discussion of these factors, risks and uncertainties. The forward-looking statements or information contained in this document are made as of the date hereof and OPTI undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws or regulatory policies.

Contact Information

  • OPTI Canada Inc.

    (403) 249-9425