Globe/CP say Opti Canada increases annual loss

2009-02-26 09:05 EST - In the News

The Globe and Mail reports in a Canadian Press dispatch Thursday that Opti Canada on Wednesday reported its annual loss ballooned to $257-million in 2008 from a year-earlier $9-million.

The unbylined item says the company was hit by a $392-million pretax asset impairment provision related to the sale of a working interest in the Long Lake project to joint venture partner Nexen Inc.

Opti is developing the project with Nexen using Opti's proprietary OrCrude process that reduces natural gas needs.

The first phase of the project consists of 72,000 barrels a day of steam-assisted gravity drainage bitumen production integrated with an upgrading refinery.

Last month, Opti completed the sale of a 15-per-cent working interest in the Long Lake project to Nexen for $735-million.

That gives Nexen 65 per cent of the project, with Opti holding 35 per cent. Opti Canada shares fell 16 cents Wednesday to $1.09 on the Toronto Stock Exchange

Opti Canada loses $257-million in 2008

2009-02-25 06:53 EST - News Release

Mr. Sid Dykstra reports

OPTI CANADA ANNOUNCES YEAR END 2008 RESULTS

Opti Canada Inc. has released its financial and operating results for the year ended Dec. 31, 2008.

The Long Lake project is the first to use Opti's integrated OrCrude process. The company's proprietary process is designed to substantially reduce operating costs compared with other oil sands projects while producing a high-quality, sweet synthetic crude. The company is also advancing future phases of growth via a multistage expansion strategy to reach 126,000 barrels per day of premium sweet crude (PSC) production capacity net to Opti.

Key recent developments include the:

• Production of first PSC, the highest-quality synthetic crude to come from Canada's oil sands. Syngas is being produced in the upgrader and used in the steam-assisted gravity drainage (SAGD) operations to significantly reduce operating costs. The operations team is actively working to stabilize production, which is expected to ramp up to approximately 58,500 barrels per day of PSC (21,000 barrels per day net to Opti) in 2010;
• Maintenance of an outstanding safety record throughout 2008 as commissioning and start-up activities were completed on the Long Lake upgrader;
• Sale of a 15-per-cent working interest in the company's joint venture to its partner, Nexen Inc., for $735-million. Effective Jan. 1, 2009, Opti retains a 35-per-cent working interest in the joint venture assets, future phase reserves and resources, and future phases of development.

"While commodity and financial markets continue to be challenging, we are pleased to have achieved key milestones early in 2009," said Sid Dykstra, president and chief executive officer. "With first production of on spec PSC a few weeks ago we demonstrated our technology works. In addition, with the closing of the working interest sale we have significantly enhanced our liquidity while retaining a substantial stake in a world class asset."

Hg