Some of the achievements in 2014 include:
Issuance of the patent from the United States Patent and Trademark Office on the Company’s bitumen extraction process;
The appointment of Mr. Mark H. Brown, P.Eng. to its Board of Directors, effective April 15, 2014;
The Company’s Board of Directors approved the Final Investment Decision to proceed with construction of the PR Spring Project (the "Project");
All major process extraction equipment components have been ordered. As at year end, the Company has commitments of US$4.1 million for capital equipment and engineering, and in 2014, invested US$12.2 million;
Completion of plant site field construction to accept delivery of process extraction equipment modules in Q2/15 and Q3/15;
Completed construction of a 4,800 square foot warehouse facility at the Project site;
Opened a second office location in Utah to act as a base of operations for the Project;
Expanded permanent staff to support PR Spring Project development including a Project Manager, an HSE & Regulatory Manager, a Supply Chain & Project Services Manager, and project and process engineers. To support the Company’s expanded research and development initiatives, the Company has also added a Research and Development Manager who is an experienced PhD scientist with significant oil sands experience;
Announced the addition of Mr. Ed Koshka, Vice President, Business Development & Marketing, to its executive management team effective September 2, 2014;
Initiated a program, with the support of two Athabasca oil sands industry developers, to procure significant quantities of oil sands from Athabasca resource deposits and to test the extraction efficacy of the Company’s patented technology; and
In a unanimous decision, the Utah Supreme Court dismissed the only outstanding regulatory challenge made against the Project.
“2014 was without a doubt the busiest ever for the Company” said Cameron Todd, CEO of US Oil Sands. “Following quickly on the heels of the late-2013 CDN$81 million equity financing, our small project team was immediately tasked with bringing the PR Spring Commercial Demonstration Project from the drawing board to the field. In early 2014 we assembled a team with world-class expertise in project and construction management and we have continued to add to that team as the Project accelerates. Now that all major equipment has been ordered, our attention is now squarely focused on the modular fabrication and skidding of this equipment followed by shipment to the field in mid-2015. The Project remains on track and on budget to commence installation and commissioning in the second and third quarters of this year.”
OPERATIONAL HIGHLIGHTS
With the Board of Directors’ approval of the Final Investment Decision to proceed with construction of an enhanced Phase 1 Project at its PR Spring location in Utah, the Company assembled an experienced team to contribute all aspects of engineering, project management, construction management and field operations. To support the increased activity, the Company opened a second office location in Utah to act as a base of operations for the Project.
Field grading commenced in Q2/14 and continued into Q3/14 which saw the entire plant site graded, fenced and foundations prepared to accept the plant extraction modules anticipated to be delivered to the Project site during Q2/15 and Q3/15. Roadways and utility supply infrastructure were commenced during 2014 and will resume in early 2015 as weather allows.
Engineering and procurement was a major focus for the Project throughout 2014. Over 24,000 man-hours of engineering were invested to design all elements of the Project. During 2014, the Company utilized the engineering expertise of Kellogg Brown & Root LLC (“KBR”) and FLSmidth USA Inc. to fulfill much of this requirement. In late December 2014, KBR announced the impending closure of its Salt Lake City office. The Company transitioned the engineering contract and all key engineering personnel to Precision System Engineering, Inc., an experienced local Salt Lake City firm. Construction management will be performed by the Company and directly engaged personnel who have expertise in the oil sands industry.
My posts are not meant as investment advice. Always check company filings and do you own Due Diligence
