OPTI Canada Announces Appointment of Advisors
TSX: OPC
CALGARY, Nov. 14 - OPTI Canada Inc. (OPTI) announced today that the
company has appointed TD Securities Inc. (TD Securities) to assist in its
previously announced review of funding options for its continuing cash
requirements in 2009. The review will include an assessment of a range of
funding options including asset sales, new debt, and/or new equity.
Continued uncertainty in capital markets is constraining access to new
debt and equity for many companies. There can be no assurances that any
transaction will occur or, if one is undertaken, its terms or timing. OPTI
does not expect to update its progress with respect to the review of options
until the Board of Directors authorizes any transaction or if required by
disclosure requirements.
At November 11, 2008 we have approximately $324 million of cash on hand
(excluding the company's interest reserve accounts). These resources are
expected to be sufficient through start-up of the Long Lake Upgrader (the
Upgrader) and into early to mid-2009. Upon the commencement of operations of
the Upgrader, we expect to generate positive operating cash flows. Total cash
flow from the Long Lake Project (the Project) in the fourth quarter of 2008
and early 2009 will be impacted by many factors including, but not limited to,
the final cost of the Project, timing of commencement of operations, the rate
of ramp-up of the Long Lake SAGD operation and the Upgrader during the
start-up phase, as well as oil and natural gas prices.
"We have a world class asset in the process of starting up," said Sid
Dykstra President and CEO of OPTI Canada. "The Upgrader is expected to be
producing cash flows in the near future but looking ahead to our 2009 cash
flow needs and considering the current financing environment we want to be
proactive in generating additional liquidity to fund our future capital
programs." |
