PP Financing NewsOPTI Canada Announces Proposed Financing Plan and Project Update Back
via COMTEX
Aug 11, 2010 7:10:00 AM
CALGARY, ALBERTA, Aug 11, 2010 (Marketwire via COMTEX News Network) --
OPTI Canada Inc. (TSX:OPC) ("OPTI" or the "Company") announced today that it intends to offer by way of private placement US$100 million of First Lien Senior Secured Notes due 2012 (the "new 2012 Notes") and US$300 million First Lien Senior Secured Notes due 2013. The new 2012 Notes are being offered as additional notes under an indenture pursuant to which OPTI issued US$425 million aggregate principal amount of 9% First Lien Senior Secured Notes, due 2012, on November 20, 2009. The purpose of the private offerings is to maintain sufficient liquidity through the ramp-up period of the Long Lake Project and to allow the Company to continue with its previously announced review of strategic alternatives. The net proceeds will be used to repay outstanding amounts under our revolving credit facility and for general corporate purposes.
Completion of these transactions is anticipated prior to the end of August 2010 but remains subject to a number of conditions, including agreement on final terms and conditions.
Project Update
The Long Lake Project (the "Project") continued to progress in July, with improvements in steam injection, bitumen production and Premium Sweet Crude (PSC(TM)) sales. July average bitumen production was 28,700 barrels per day (bbl/d) (10,000 bbl/d net to OPTI), with steam injection averaging 148,000 bbl/d. We had 71 well pairs on production as of July 31, 2010 and reached an average weekly bitumen production of 30,100 bbl/d (10,500 bbl/d net to OPTI) in late July.
In August, a combination of unplanned Upgrader maintenance and a short-term pipeline capacity restriction has resulted in a temporary reduction in steam injection, bitumen production and PSC(TM) sales. The pipeline restriction relates to the transportation of heavy crude out of Alberta and is unrelated to the Project. We expect to return to normal operations and average daily July bitumen production levels within one or two weeks.
OPTI will update its corporate presentation, a copy of which will be available on its website.