Tuesday, November 3rd, 2009
Oilsands junior Opti exploring possible asset divestitures, corporate sales
CALGARY - Oilsands junior Opti Canada Inc. (TSX:OPC), a minority partner in the Long Lake project in northern Alberta, says it is exploring "strategic alternatives," which may include selling assets or the entire company.
The Calgary-based firm could also look at capital markets opportunities, restructuring its current credit line or pursuing a merger arrangement.
"Opti believes that the current trading price of its common shares does not reflect the value of its assets," the company said in a statement after markets closed on Tuesday.
Its shares closed at $1.09 on the Toronto Stock Exchange Tuesday, a gain of two cents.
The operator of Long Lake is Nexen Inc. (TSX:NXY), which until late last year evenly split ownership of Long Lake with Opti.
But in December Nexen bought an additional 15 per cent stake in the project from Opti, giving it 65 per cent of the venture.
The two companies had to put production at Long Lake on hold earlier this year due to problems with the project's water treatment equipment.
Nexen said last week production has since ramped back up to between 10,000 and 12,000 barrels of bitumen a day, around the levels before the maintenance work took place.
Long Lake's first phase is designed to produce 72,000 barrels of bitumen. Opti chief executive Chris Slubicki cautioned last week that Long Lake will take longer than expected to reach its design rates than its target of late 2010.
Scotia Waterous Inc. and TD Securities Inc. are working with Opti in the strategic review process.
Oilpatch watchers have said international energy players looking to bulk up their oil reserves will likely be interested in gobbling up smaller oilsands players.
In August PetroChina made a $2-billion investment in privately-held Athabasca Oil Sands Corp.
Opti saw its stock spike up shortly thereafter amid speculation it could be next.
UTS Energy Corp. (TSX:UTS), another small player that has a 20 per cent stake in the Fort Hills oilsands project and interests in several other properties in the region, announced on Monday it had sold some of its holdings.
Imperial Oil Ltd. (TSX:IMO) and its U.S. parent ExxonMobil Corp. (NYSE:XOM) bought UTS' half-interest in their Lease 421 properties in northern Alberta for $200 million after tax.
