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Canadian Oil Sands says no plan to sell future production

Published 2015-09-09, 12:44 p/m
© Reuters. Canadian Oil Sands says no plan to sell future production
COS
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CVE
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OVV
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By Nia Williams
CALGARY, Alberta, Sept 9 (Reuters) - Canadian Oil Sands Ltd
COS.TO , the largest stakeholder in the Syncrude oil sands
project, said on Wednesday it had reviewed selling a small
portion of its future production but decided against the option
for now.
COS spokeswoman Siren Fisekci said a sale would have
involved a small percentage of revenues COS generates from crude
production in a exchange for a one-time payment.
She declined to comment on a Wall Street Journal report that
the company had spoken with Boston-based hedge fund Highfields
Capital Management, a COS shareholder, about selling future
production to bolster its finances.
"We have evaluated it in light of what other companies have
done," Fisekci said, citing recent sales by Cenovus Energy Inc
CVE.TO and Encana Corp ECA.TO of freehold royalty properties
to raise cash.
"Our view is that we do not need additional funding but it
remains an option available."
COS owns 37 percent of the Syncrude project in northern
Alberta, which produced just over 300,000 barrels per day of
light, sweet synthetic crude last month.
Like most other Canadian oil and gas producers the company
has been hard hit by a slump in global crude prices.
COS shares edged down 7 Canadian cents on the Toronto Stock
Exchange to C$6.46 shortly after midday. The stock has plunged
more than 70 percent since June 2014 when crude prices first
started to slide.

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