MESSAGE TO OUR SHAREHOLDERS
Our message for the first quarter of 2015 is similar to that of the past year as outlined in our disclosure and at our 2014 Annual General Meeting – numerous challenges face the junior oil sands sector and conditions are difficult. Oil prices have improved a little in the last few weeks since the lows of early March but it will take sustained, higher prices to bring investors back to the sector. Current low oil prices leave little or no funds available for new investment, strategic acquisitions or new project development for potential suitors. We will also need to see regulatory and fiscal uncertainty reduced to further convince investors that the time is right to be a part of the oil sands industry. It is clear that investors will sit on the sidelines until there is some clarity as to how the new government in Alberta intends to manage the energy portfolio.
Management will continue to operate the company with prudent spending as we wait for revised regulations relating to shallow SAGD projects which will impact our Audet SAGD project. Our strategic advisors from RBC Capital Markets will continue to seek interest from counterparties who have a long term view of the value of high quality oil sands assets. In the absence of renewed interest from such counterparties, our Board will have no choice but to consider all options including wind-up of the company.
As we have said previously, we are extremely disappointed to be at this juncture and will continue to work on behalf of shareholders to seek the best outcome. We will keep you informed of progress as information becomes available.
President and Chief Executive Officer
Calgary, Alberta, Canada
May 19, 2015