Canadian Oil Sands Suspends Distribution Reinvestment Plan
Canadian Oil Sands Trust is suspending its premium distribution, distribution reinvestment and optional unit purchase plan ("DRIP") effective July 25, 2009.
Since the DRIP was reinstated in Q1, 2009, the Trust's liquidity position has improved significantly as a result of its US $500 million senior note issue in May 2009 and the increase in crude oil prices. As such, the DRIP is no longer required in the current environment; however, the Trust may reinstate the DRIP in the future if required to fund new investing activities or financing activities. Accordingly, the distributions starting in respect of the third quarter 2009 will not allow DRIP participation.
Canadian Oil Sands provides a pure investment opportunity in the Syncrude Project through its 36.74 percent working interest. The Trust is an open-ended investment trust managed by Canadian Oil Sands Limited and has approximately 484.4 million units outstanding, trading on the Toronto Stock Exchange under the symbol COS.UN.
Located near Fort McMurray, Alberta, Syncrude Canada operates large oil-sands mines and an upgrading facility that produces a light, sweet crude oil on behalf of its joint venture owners, which include Canadian Oil Sands Limited, ConocoPhillips Oilsands Partnership II, Imperial Oil Resources, Mocal Energy Limited, Murphy Oil Company Ltd., Nexen Oil Sands Partnership, and Petro-Canada Oil and Gas.
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