CALGARY, ALBERTA–(Marketwired – Nov. 29, 2016) – US Oil Sands Inc. (“US Oil Sands” or the “Company“) (TSX VENTURE:USO), an innovator of oil extraction technologies, today announced that it has filed its unaudited interim financial statements (“Interim Report“) for the three and nine-month periods ended September 30, 2016 (“Q3 2016“) along with the management discussion and analysis (“MD&A“) of the financial results of US Oil Sands for such period.
The Interim Report and MD&A contain disclosure that the information has been prepared on a going concern basis, which asserts the Company has the ability to continue to realize its assets and discharge its liabilities and commitments in a planned manner.
As a result of prolonged construction activities, the Company is operating with a working capital deficit. Additional capital is required to fund construction and commissioning of the PR Spring plant, as well as to successfully operate the plant and mine. At September 30, 2016 the Company had negative working capital of $2.1 million.
US Oil Sands is pursuing various strategies to improve its liquidity position, including asset-based and equity financing. The completion of any of these strategies is subject to material uncertainty which causes significant doubt about the Company’s ability to continue operations under its current capital structure. There can be no assurance that the steps management will take will be successful. As such, there is significant doubt and there can be no assurance the Company will be able to continue as a going concern.
The Company will provide an update on operations and financing as soon as there is material information to report.
ABOUT US OIL SANDS INC.
US Oil Sands is engaged in the exploration and development of oil sands properties and, through its wholly owned United States subsidiary US Oil Sands (Utah) Inc., has a 100% interest in bitumen leases covering 32,005 acres of land in Utah’s Uinta Basin. The Company plans to develop its oil sands properties using its proprietary extraction process which uses a bio-solvent to extract bitumen from oil sands without the need for tailings ponds. The Company is in the pre-production stage, anticipating the commencement of bitumen production and sales once it has completed construction and start-up of the PR Spring Project (the “Project”).