OPTI Canada has appointed TD Securities Inc. to assist in its previously announced review of funding options for its continuing cash requirements in 2009. The review will include an assessment of a range of funding options including asset sales, new debt, and/or new equity.
Continued uncertainty in capital markets is constraining access to new debt and equity for many companies. There can be no assurances that any transaction will occur or, if one is undertaken, its terms or timing. OPTI does not expect to update its progress with respect to the review of options until the Board of Directors authorizes any transaction or if required by disclosure requirements.
At November 11, 2008 we have approximately $324 million of cash on hand (excluding the company's interest reserve accounts). These resources are expected to be sufficient through start-up of the Long Lake Upgrader (the Upgrader) and into early to mid-2009. Upon the commencement of operations of the Upgrader, we expect to generate positive operating cash flows. Total cash flow from the Long Lake Project (the Project) in the fourth quarter of 2008 and early 2009 will be impacted by many factors including, but not limited to, the final cost of the Project, timing of commencement of operations, the rate of ramp-up of the Long Lake SAGD operation and the Upgrader during the start-up phase, as well as oil and natural gas prices.
"We have a world class asset in the process of starting up," said Sid Dykstra President and CEO of OPTI Canada. "The Upgrader is expected to be producing cash flows in the near future but looking ahead to our 2009 cash flow needs and considering the current financing environment we want to be proactive in generating additional liquidity to fund our future capital programs."
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