HONG KONG, CHINA and CALGARY, ALBERTA–(Marketwired – Feb. 28, 2017) – The Board of Directors of Sunshine Oilsands Ltd. (“the Corporation” or “Sunshine“) (HKSE:2012) hereby announces the following:
On March 1, 2017 (Hong Kong Time) / February 28, 2017 (Calgary Time), the Corporation is pleased to announce that the West Ells Phase I project (“the Project”) located in the Athabasca region of Alberta has achieved commercial production on March 1, 2017 (Hong Kong Time) / February 28, 2017 (Calgary Time). This marks a key milestone for the Corporation, following which the Project will be treated as a fully operational project.
As at the date of this announcement, the Project has met the following criteria to be qualified as a commercialized project:
- The formation has been steaming for more than one year.
- All of the 8 well pairs have been in SAGD production for a certain period of time.
- The plant has been operating in the manner as intended by the management.
- The project is now running at approximately 60% of its nameplate capacity.
Hence, the Corporation will cease capitalization of the petroleum revenue, royalties, diluent costs, transportation costs and operating expenses in relation to the Project and will commence recording depletion of the Project under IFRS effective March 1, 2017. These amounts will then be included in the Statement of Operations and Comprehensive Loss.
ABOUT SUNSHINE OILSANDS LTD.
The Corporation is a Calgary based public corporation listed on the Hong Kong Stock Exchange since March 1, 2012. The Corporation is focused on the development of its significant holdings of oil sands leases in the Athabasca oil sands region of Alberta, Canada. 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.