CALGARY, Alberta and HONG KONG, Dec.14, 2014 /CNW/ — The Board of Directors of Sunshine Oilsands Ltd. (the “Corporation” or “Sunshine“) (HKEX: 2012, TSX: SUO) has unanimously appointed Mr. Hong Luo, a Director of the Corporation, as Chief Executive Officer, subject to obtaining all necessary immigration approvals. The Board of Directors has also unanimously appointed Dr. Qi Jiang as President and Chief Operating Officer and a Director. There are no disagreements among board members and there are no special matters relating to these new appointments that need to be brought to the attention of the shareholders of the Corporation.
Appointment of a Chief Executive Officer
The Board is pleased to announce that Mr. Hong Luo, a Director of the Corporation, has been appointed as Chief Executive Officer, subject to obtaining all necessary immigration approvals. This appointment will become effective once all such approvals have been obtained. Until such time, Mr. Michael Hibberd, the Corporation’s Executive Vice Chairman will continue to perform the functions of the CEO of the Corporation.
Mr. Luo, aged 51, has been a Director of the Corporation since November 28, 2014 and is currently the Executive Vice President of Sinopec Canada and has served in this role since February 2012. Mr. Luo has 30 years’ experience in the oil and gas industry. Prior to joining Sinopec Canada, Mr. Luo was Director of Strategy and Planning at Sinopec International Petroleum Exploration and Production Corporation (SIPC) from September 2009 to January 2012. From May 2008 to August 2009, Mr. Luo was President of West Africa and Asia-Pacific Exploration and Production Projects and from May 2007 to April 2008, he served as Director of Exploration of SIPC. Mr. Luo was Vice President of the First International Oil Company of SIPC in Kazakhstan from April 2006 to April 2007 and, from April 2004 to March 2006, Mr. Luo was Exploration Manager of Saudi Sinopec Gas Co. (Saudi Arabia). Prior to 2004, Mr. Luo held executive leadership positions in Northwest Oil Company’s business units of Sinopec in China, serving in many executive capacities and in numerous geological, engineering, operational and planning roles throughout northwest China and the Tarim Basin. Mr. Luo holds a Bachelor of Geology from the University of Science and Technology of Chengdu, China.
An offer of employment, conditional upon obtaining all necessary immigration approvals, has been signed with Mr. Hong Luo that outlines compensation terms that will be formalized into a services contract in due course.
Mr. Luo will be compensated under his services contract as follows: an annual base salary of C$470,000 per annum, entitled to an initial grant of 3,000,000 stock options (with an exercise price to be determined based on the market price of the Corporation’s common shares on the effective date of his employment in accordance with applicable stock exchange policies), entitled to an annual bonus of between C$300,000 and C$705,000 at the discretion of the Board, entitled to eight weeks of paid vacation per annum, and entitled to the standard benefits made available to all of the Corporation’s employees. The terms of Mr. Luo’s remuneration were arrived at through negotiation between Mr. Luo and the Corporation and were considered and approved by the Corporation’s Compensation Committee prior to making the offer of employment.
Appointment of a Director and President and Chief Operating Officer
The Board is pleased to announce that Dr. Qi Jiang has been appointed as a Director effective as of December 15, 2014 and as President & Chief Operating Officer of the Corporation, with effect as of January 5, 2015. Dr. Jiang, aged 51, has over 31 years of experience in the oil and gas industry, including over 25 years of broad experience in heavy oil and oilsands development. Dr. Jiang served as Vice-President, Reservoir and Production Engineering from 2012 to current date with OSUM Oil Sands Corp. (“OSUM”). He served as Manager, EOR and Reservoir Engineering with OSUM from 2008 to 2011. Prior to that he worked at Canadian Natural Resources Limited for eight years leading reservoir and production optimization, field testing of new recovery technologies, reservoir simulation and strategic planning for oilsands projects. Dr. Jiang has also held senior positions in PetroChina, Silk Energy Corp. and GravDrain Inc. that involved design and operation of thermal projects.
Dr. Jiang holds a Ph.D. (1997) and an M.Sc. (1994) in Petroleum Engineering from University of Calgary. He earned his B.Sc. (1983) in Petroleum Engineering at Southwest Petroleum University in China. He is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta, a member of the Society of Petroleum Engineers and a member of the Canadian Heavy Oil Association. Dr. Jiang has published over 20 publications related to cyclic steam stimulation, steam assisted gravity drainage and solvent extraction technologies.
An offer of employment has been signed with Dr. Jiang outlining compensation terms that will be formalized into a services contract in due course.
In relation to Dr. Jiang’s role as a Director, there is no service contract between the Corporation and Dr. Jiang and he has not been appointed for a specific term and he is currently not entitled to receive any director’s emolument (such emolument is subject to revision by the compensation committee of the Corporation). In accordance with the Corporation’s articles of incorporation and by-laws, Dr. Jiang shall hold office as a Director subject to re-election at the next annual general meeting of the Corporation.
As at the date of this announcement, Dr. Jiang has not held any directorships in other listed public companies in the last three years and does not hold any other positions in the Corporation nor in any other subsidiaries of the Corporation. Dr. Jiang does not have any relationship with any directors, supervisors, senior management, substantial or controlling shareholder of the Corporation, nor does he have any interests in the securities of the Corporation within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
Save as disclosed above, Dr. Jiang has confirmed that there is no other information that is required to be disclosed in accordance with Rule 13.51(2)(h) to (v) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and there is no other matter relating to his appointment that needs to be brought to the attention of the shareholders of the Corporation.
ABOUT SUNSHINE OILSANDS LTD.
The Corporation is a Calgary based public corporation, listed on the Hong Kong Stock Exchange since March 1, 2012 and the Toronto Stock Exchange since November 16, 2012. The Corporation is focused on the development of its significant holdings of oil sands leases in the Athabasca oil sands region. The Corporation owns interests in approximately one million acres of oil sands and petroleum and natural gas leases in the Athabasca region. The Corporation is currently focused on executing milestone undertakings in the West Ells project area. West Ells has an initial production target rate of 5,000 barrels per day.
FORWARD LOOKING INFORMATION
This announcement contains forward-looking information relating to, among other things, (a) the future financial performance and objectives of Sunshine; and (b) the plans and expectations of the Corporation. Such forward-looking information is subject to various risks, uncertainties and other factors. All statements other than statements and information of historical fact are forward-looking statements. The use of words such as “estimate”, “forecast”, “expect”, “project”, “plan”, “target”, “vision”, “goal”, “outlook”, “may”, “will”, “should”, “believe”, “intend”, “anticipate”, “potential”, and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on Sunshine’s experience, current beliefs, assumptions, information and perception of historical trends available to Sunshine, and are subject to a variety of risks and uncertainties including, but not limited to those associated with resource definition and expected reserves and contingent and prospective resources estimates, unanticipated costs and expenses, regulatory approval, fluctuating oil and gas prices, expected future production, the ability to access sufficient capital to finance future development and credit risks, changes in Alberta’s regulatory framework, including changes to regulatory approval process and land-use designations, royalty, tax, environmental, greenhouse gas, carbon and other laws or regulations and the impact thereof and the costs associated with compliance. Although Sunshine believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this announcement are not exhaustive and readers are not to place undue reliance on forward-looking statements as the Corporation’s actual results may differ materially from those expressed or implied. Sunshine disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this announcement, except as required under applicable securities legislation. The forward-looking statements speak only as of the date of this announcement and are expressly qualified by these cautionary statements. Readers are cautioned that the foregoing lists are not exhaustive and are made as at the date hereof. For a full discussion of the Corporation’s material risk factors, see the Corporation’s annual information form for the year ended December 31, 2013 and risk factors described in other documents we file from time to time with securities regulatory authorities, all of which are available on the Hong Kong Stock Exchange at www.hkexnews.hk, on the SEDAR website at www.sedar.com or the Corporation’s website at www.sunshineoilsands.com.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
As at the date of this announcement, the Board consists of Mr. Michael John Hibberd, Mr. Hong Luo, Dr. Qi Jiang and Mr. Jin Hu as executive directors; Mr. Hok Ming Tseung, Mr. Tingan Liu and Mr. Haotian Li as non-executive directors; and Mr. Raymond Shenti Fong, Mr. Robert John Herdman, Mr. Gerald Franklin Stevenson and Mr. Zhefei Song as independent non-executive directors.
* For identification purposes only
SOURCE Sunshine Oilsands Ltd.
For further information: Mr. Tingan Liu, Non-Executive Chairman, (852) 2835 0225; Mr. Michael Hibberd, Executive Vice-Chairman, (1) 403 984 1440, http://www.sunshineoilsands.com