Sunshine Oilsands Ltd.

Sunshine Oilsands Ltd.

October 16, 2009 09:25 ET

Sunshine Oilsands Ltd. Announces Positive "Gas Over Bitumen" Interim Shut In Ruling

CALGARY, ALBERTA--(Marketwire - Oct. 16, 2009) - Sunshine Oilsands Ltd., ("Sunshine" or the "Company"), is pleased to announce that the ERCB has ordered the interim shut in of producing gas wells in the Wabiskaw "O", "A" and "M" Pools in the Liege Gas Field of the Athabasca Oil Sands. The gas producers in the Wabiskaw "O", "A", and "M" Pools in the Liege Gas Field are required to shut in 158 producing gas wells by October 31, 2009, pending the outcome of a full hearing of the Shut In Application.

Mr. Brown, the Company's Co-CEO and COO, stated that "this interim shut in order is a well timed event for the company and is an important step in the realization of our strategic objectives. We have a massive bitumen resource in the region that can be harvested with conventional SAGD." Sunshine is focused on the execution of its independently evaluated contingent resources in the West Ells and Thickwood regions, which can achieve a combined production potential of 180,000 bbls/day for a life cycle spanning more than 30 years.

Mr. Brown also appreciated that the ERCB has again ruled in favor of conservation and continues to protect this strategic resource for the benefit of Albertans. As stated by Mr. Brown, "this kind of proactive response on the part of the ERCB is very helpful to the timely development of bitumen in the province."

About Sunshine Oilsands Ltd.

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 by way of thermal recovery.

The Company's initial development plans include a conventional heavy oil project and a 180,000 bbl/d production profile from part of its cretaceous land inventory. Sunshine's initial adjudicated resource report which was based on 58 core holes encompassing 396 sections resulting in 9.1 Billion barrels of original bitumen in place, 2.5 Billion barrels high case gross lease recoverable resource and 1.3 Billion best case gross lease recoverable resources.

Advisory Respecting Forward-Looking Statements:

This news release contains certain forward-looking information and statements relating to the business of the Company, including, without limitation, statements regarding development plans and production. 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 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. Readers are cautioned to not place undue reliance on the forward looking information and statements. Actual results and developments may differ materially from those contemplated by these statements.

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 required by applicable laws.

Contact Information

  • Sunshine Oilsands Ltd.
    John Kowal
    (403) 984-1450
    Sunshine Oilsands Ltd.
    Doug Brown
    Co-CEO & COO
    (403) 984-1450