Gelonghui, May 10, 丨 Sunshine Oil Sands (02012.HK) announced that Sunshine Oil Sands is the equity holder and developer of oil sands resources in the Athabasca region, and has the best estimated amount of recoverable resources of about 91 million barrels. As of December 31, 2023, the company's risk-free best estimated amount of recoverable resources was approximately 1.53 billion barrels. The company has more than 1 million acres of oil sands and oil and gas leasing blocks, and has huge potential for commercial development. The first phase (5,000 barrels) of the West Ells 10,000 barrel heat recovery commercial project is being produced and continuously increased to meet the design capacity of the plant. The Athabasca region has the richest oil sands reserves in Alberta, Canada. Canada's oil sands are the largest petroleum resource discovered in a stable political environment in the Western Hemisphere and the third largest petroleum resource in the world. Canada's oil sands are also the single largest source of imported oil supply from the US. The company has only one business and geographic division. As a result, no information on business and geographical segments is presented.

With the completion and commissioning of the first phase of West Ells (the “Project”) commercial project with a daily output of 5,000 barrels, the Company focused on evaluating and developing its current oil sands assets for this project. Once financing is secured, the company is planning to enter the second phase of the project, increasing production by an additional 5,000 barrels per day. On March 1, 2017, the West Ells Phase I oil production project commenced commercial production.

As of March 31, 2024, the company has invested approximately $1.29 billion in oil sands mining leasing, drilling operations, project engineering, procurement and construction, commencement of operations, ongoing regulatory applications and other assets. As of March 31, 2024, the company had 390,000 Canadian dollars in cash.

The company relies on the ability to obtain various forms of financing and operating cash flow to cover administrative expenses and future exploration and development costs for its projects. The company's ability to continue operating depends on the continued operation and development of West Ells, marketing oil sands and heavy oil blends at favorable prices, and the ability to operate profitably and refinance current liabilities and immediately obtain additional financing. There is currently no guarantee that the actions that management will take will be successful. Therefore, there are major questions about whether the company can continue to operate, and there is no guarantee that the company can continue to operate.

West Ells

On March 1, 2017, the company reached an important milestone. This project commences commercial production. As a result, starting June 4, 2017, the company began recording revenue, license fees, expenses, and losses for the West Ells project. On March 31, 2020, due to fluctuations in the international crude oil market, crude oil prices fell sharply, and considering that the company's West Ells production equipment and roads needed maintenance, as well as the COVID-19 outbreak in Canada, the company's board of directors decided to suspend production. On April 11, 2022, the company announced that its West Ells project had fully resumed operations.

For the three months ended March 31, 2024, the company's average oil sands and heavy oil production were 1,185.9 barrels/day, respectively. As part of the production process, oil sand heavy oil is mixed with a diluent to produce a “diluted oil sand heavy oil” blend product that can be sold. As of the first quarter of 2024, the average sales volume of diluted oil sands was 1,665.4 barrels/day.

Thickwood and Legend

The Thickwood and Legend projects each plan to produce 10,000 barrels/day in the first phase. Thickwood's regulatory approval was received in the third quarter of 2013.

Muskwa and Godin clastic rock operations (non-operating 50% working rights)

As of the date of the announcement, Muskwa was not in production. With the signing of a revised supplementary agreement with Renergy, development in the Muskwa region is expected to gradually restart, without Sunshine bearing any costs.