CS - Osum doubles Orion production after Phase 2BC expansion - July 2019Osum Oil Sands Corp. produced over 19,000 bo/d from its Orion thermal project
in the Cold Lake oil sands region in Q2, which is more than double YOY following the
Phase 2BC expansion in 3Q18. The company said the amount of production surpassed
its 18,000 bo/d target for this time.
Additionally, taking action to combat a challenging market, the company
announced July 3 that it amended its credit facility to extends the maturity of about US$172
million, or 90.6%, of its existing...
Jul 10, 2019
Osum plans Phase 2B expansion of Orion thermal projectPrivately held Osum Oil Sands Corp. is planning the Phase 2B expansion of its Orion thermal project in in the Cold Lake oil sands region of northern Alberta about 200 km northeast of Edmonton, with the project expected to add 3,000 bbl/d to boost production to ~12,000 bbl/d by mid-2019. Orion is producing 7,500-8,000 bbl/d of bitumen from the Clearwater Formation, with the just-completed Phase 2A expansion expected to add 1,500 bbl/d over the next 12 months. The Phase 2B expansion is expected...
Oct 30, 2017
Fairly ordinary capital raising joined by royalty-based dealOSUM Oil Sands raised $92 million
through the sale of royalties (PG. 15), a sign
that the desirability of raising capital from
traditional sources may be waning. The
funds will be used to expand the company’s
Orion project. In addition to recent
royalty-based funding,
the last few weeks saw a few new issues.
Enbridge issued an additional $700 million
in debt (PG. 1). Crown Point Energy
completed a $4.1 million follow-on equity
offering (PG. 4). Renaissance Oil issued
17.4 million...
Oct 27, 2017
OSUM Oil Sands raises $92 million through royalty saleA private oil sands producer is selling a portion of its future production to raise
funds to expand its operations in northern Alberta, a financing technique that has
gained traction in a sector where traditional lenders have grown more cautious in an
era of lower oil and gas prices.
Osum Oil Sands Corp. has approved a 3,000 bbl/d expansion
at its Orion project, a plan which will push its total production to over
12,000 bbl/d by mid-2019.
The company will pay for expansion
with $92.5...
Oct 27, 2017
Analyst Takes - October 27, 2017Baytex Energy expected to outperform its peersBaytex Energy is undervalued relative to its peers and the market’s concerns
about its debt are overblown. The price of oil is likely to rise, based on the combined
impact of increased exports and delayed refinery maintenance, both of which should
lead to a decline in oil inventories. Lower than expected production
in the US is also expected to push prices higher. Baytex Energy has
a high beta to oil prices as a function of its higher cost...
Oct 27, 2017
Osum sells royalty in Orion for $92.5MM as Phase 2B beginsPrivately held Osum Oil Sands Corp. sold a 4% gross overriding royalty interest
on its Orion Thermal Project in Alberta for $92.5 million, in the latest instance
of companies opting for royalty sales instead of debt or equity issuances to raise
capital. The sale will partially fund the concurrently announced Phase 2B expansion
of Orion that will see the
addition of 3,000 bbl/d to
boost production to ~12,000 bbl/d by
mid-2019. TD Securities acted as Osum’s financial advisor on the...
Oct 11, 2017
Analyst Notes - October 11, 2017Cenovus Energy (CVE; $12.69-Sept. 22; Overweight; PT-$17.00)
CVE announced the sale of its Suffield assets for gross proceeds of C$512 million
plus a potential contingency payment of up to $36 million. The sale price is in line
with our expectation of C$400-C$600 million...However, we believe the price tag is
higher than the market’s initial expectation, several months ago…
We believe the market had initially assumed the four assets
targeted for sale—Pelican and Suffield (both now...
Oct 11, 2017
Calgary’s RimRock buys into US Bakken in $500MM dealIn a North American deal of interest to international dealmakers, Calgary-based RimRock Oil & Gas is acquiring mostly non-op Bakken/Three Forks assets in North Dakota from US independent Whiting Petroleum for $500 million. This acquisition of Fort Berthold Indian Reservation area assets is the latest instance of a Canadian company investing in non-Canadian assets. RimRock, founded in 2016 with a $500 million commitment from private equity firm Warburg Pincus, adds to its key US focus area...
Aug 23, 2017
People & Companies - August 21, 2017Canadian International Oil Corp. appointed Robert Waters as SVP and CFO. Waters has over 30 years of industry experience including 19 years as CFO at companies such as Enerplus, Pengrowth and OMERS Energy. CIOC is also considering changing its names to Hammerhead Resources Inc. to reflect its geographic focus on Alberta’s Hammerhead region. A decision to change the name will be considered at the next shareholder meeting. Cardinal Energy appointed Stephanie Sterling to its board....
Aug 21, 2017
Osum to boost Orion bitumen volumes by 70%Osum Oil Sands Corp. applied to the Alberta Energy Regulator to expand its Orion SAGD development at Hilda Lake by 24 new well pairs. The projects total of 48 wells will be drilled from existing pads starting in 2018, with 16 to be brought on stream later that year or early in 2019. Osum is also seeking approval to add a third evaporator to increase available boiler feed water, a second skim tank, additional heat exchangers, utilities, a second induced gas floatation unit and an oil removal...
Apr 20, 2017
Unidentified producers eyeing bitumen carbonatesPart of a March 11 sale of oil sands rights in Alberta were 19,000 hectares of subsurface mineral rights laying underneath Shell’s 80,000 bo/d Carmon Creek oil sands project near Peace River. But while Shell’s existing rights cover the oil sands, the rights that went in the sale cover bitumen carbonates, which lay underneath the oil sands. While the bitumen carbonates are estimated to contain more oil than the oil sands, they are also much more difficult to extract. Techniques used in...
Mar 20, 2015
Osum closes $325 million purchase of Shell Orion projectPrivately held in situ oil sands operator Osum Oil Sands Corp. has closed its purchase Shell's producing Orion project (100% WI) for $325 million. Covering 5,120 acres in eastern Alberta's Cold Lake region, the SAGD operation has been online since 2007 and had Q2 bitumen production of 6,800 bpd from 22 well pairs. At forecast production rates, its expected economic life exceeds 25 years. The project is situated 18 km southwest of Osum's 35,000 bopd Taiga project recently approved for...
Jul 31, 2014
Osum secures $210 million lending facilityOsum Oil Sands Corp. secured a new US$210 million lending facility to help pay for its $325 million acquisition of Shell Canada's Orion thermal oil sands assets at Cold Lake in northeast Alberta. The term loan has a maturity date of July 31, 2020 and an interest rate of LIBOR plus 5.5% with a 1.0% LIBOR floor.Osum intends to use future cash flows from the steam assisted gravity drainage (SAGD) project to repay the loan and provide funds for expansion of its adjacent Taiga thermal...
Jul 31, 2014
Canadian M&A stays strong in Q2Upstream deal activity in Canada continued its comeback during Q2, racking up C$8.1 billion in 56 transactions (45 with disclosed values). Although dealmaking backed off somewhat vs. Q1 in terms of both total value (down 16% from $9.6 billion) and transaction count (down 10% from 62 deals), the Q1 value was skewed by one curve-wrecking $3.1 billion deal. That was Canadian Natural Resources Ltd.'s mid-February acquisition of Devon Energy's conventional Canadian portfolio. Backing out the...
Jul 25, 2014
Osum Oil Sands buys Shell's Orion project for $325 millionCapitalizing on Shell's $15 billion divestment drive, privately held in situ oil sands operator Osum Oil Sands Corp. has agreed to buy the super-major's producing Orion project (100% WI) for $325 million. Covering 5,120 acres in eastern Alberta's Cold Lake region, the SAGD operation has been online since 2007 and had Q1 bitumen production of 6,700 bpd from 22 well pairs. At forecast production rates, its expected economic life exceeds 25 years.The deal is an unusually large one for a...
Jun 11, 2014