Announcement of Results for the First Quarter Ended March 31, 2019 and an Update on West Ells Progress

Source Press Release
Company Sunshine Oilsands Ltd. 
Tags Capital Spending, Guidance, Strategy - Corporate, Financial & Operating Data
Date May 14, 2019

Sunshine Oilsands Ltd. (the “Corporation” or “Sunshine”) (HKEX: 2012) today announced its financial results for the first quarter ended March 31, 2019. The Corporation’s condensed consolidated interim financial statements, notes to the condensed consolidated interim financial statements and management’s discussion and analysis have been filed on SEDAR () and with The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) () and are available on the Corporation’s website (). All figures used in this release are in Canadian dollars unless otherwise stated.

MESSAGE TO SHAREHOLDERS

For three months ended March 31, 2019, the Company’s average bitumen production was 1,026 bbls/day. Diluent was blended at an 16.9% volumetric rate with the bitumen as part of the production process to create the marketable “Dilbit” blend product, and the average dilbit sales volume was 999 bbls/day in the first quarter of 2019.

During the first quarter of 2019, the temporary widened differential between West Texas Intermediate (“WTI”) and Western Canadian Select (“WCS”) prices put significant downward pressure on realizable prices for dilbit. Production was therefore constrained in the first quarter in order to minimize operating losses while ensuring the facilities operated efficiently. Since the end of the first quarter, the differential has narrowed significantly.

Sunshine’s Capital Raising Activities during 1Q19

In Q1 2019, the company has no capital raising activities occurred.

Summary of Financial Figures

As at March 31, 2019 and December 31, 2018, the Corporation notes the following selected balance sheet figures.

(Canadian $000s)  March 31, 2019  December 31, 2018 
Cash  249  583 
Trade and other receivables  15,517  13,457 
Prepaid expense and deposits  2,372  3,208 
Exploration and evaluation assets  269,443  269,218 
Property, plant and equipment  491,447  492,815 
Right-of-use Assets  2,338 
Total liabilities  554,195  527,328 
Shareholders’ equity  227,171  251,953 

2019 Outlook

Sunshine sees a brightening outlook as international oil prices stabilize and steadily increase and the heavy price differential narrows. Sunshine intends to continue to focus on cost controls and on carefully improving production at West Ells. The Company intends to ramp up production when the heavy oil pricing environment improves from currently high differentials from WTI oil prices. In addition, with the receipt of Shareholder’s approval for changes to the joint venture agreement and supporting agreements for the Muskwa and Godin area, the Company sees potential significant benefits resulting from re-activation of the Muskwa and Godin Area activities.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd