Exhibit 99.1
News release via Canada NewsWire, Calgary 403-269-7605
Attention Business Editors:
OPTI Canada Announces Review of Strategic Alternatives
TSX: OPC
CALGARY, Nov. 3 /CNW/ - OPTI Canada Inc. (OPTI) announces that its Board
of Directors has initiated a process to explore strategic alternatives for
enhancing shareholder value. OPTI believes that the current trading price of
its common shares does not reflect the value of its assets.
OPTI has a 35% working interest in a world class joint venture with Nexen
Inc., which includes:
<<
- a completed, integrated SAGD project, which is currently ramping up
to 72,000 bbl/d of bitumen production;
- an operating upgrader utilizing proven, proprietary technology that
is expected to result in "best-in-class" netbacks; and
- a substantial resource base of 804 million barrels of reserves,
1,114 million barrels of contingent resources and 310 million barrels
of prospective resources, which together are capable of supporting 6
long-life phases with ultimate production potential net to OPTI of
over 120,000 bbl/d of Premium Synthetic Crude (PSCTM).
>>
Operations continue to improve following the plant turnaround and the
Company anticipates continued production ramp-up through 2010.
The improving economic environment, recent operational improvements,
strengthening merger and acquisition valuations for oil sands assets and the
future potential of OPTI's assets support OPTI's current strategy. OPTI's
Board of Directors is, however, undertaking this process to assess a range of
strategic alternatives that may include capital markets opportunities,
restructuring the current credit facility, asset divestitures, and/or a
corporate sale, merger or other business combination. The ultimate objective
of carrying out this review is to determine which alternative(s) might result
in superior value for shareholders.
Scotia Waterous Inc. and TD Securities Inc. have been engaged as
financial advisors to assist in this process.
OPTI does not intend to disclose developments with respect to the
strategic review process unless and until its Board of Directors has approved
a definitive transaction or strategic option. There can be no assurance that
any transaction will occur, or if a transaction is undertaken, as to its terms
or timing.
The Company will conduct a conference call at 6:30 a.m. Mountain Time
(8:30 a.m. Eastern Time) on Wednesday, November 4, 2009. Shareholders are
invited to email questions regarding the process in advance of the conference
call to ir(at)opticanada.com. The conference call will consist of formal remarks
followed by an answer session. Chris Slubicki, President and Chief Executive
Officer, and Travis Beatty, Chief Financial Officer, will host the call. To
participate in the conference call, dial:
<<
(877) 974-0453 (North American Toll-Free)
(416) 644-3434 (Alternate)
>>
Please reference the OPTI Canada conference call with Chris Slubicki when
speaking with the Operator.
A replay of the call will be available until November 11, 2009,
inclusive. To access the replay, call (416) 640-1917 or (877) 289-8525 and
enter passcode 4181247, followed by the pound sign.
This call will also be webcast, and can be accessed on OPTI Canada's
website under "Presentations and Webcasts" in the "For Investors" section. The
webcast will be available for replay for a period of 30 days. The webcast may
alternatively be accessed at:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)2878920.
About OPTI
OPTI Canada Inc. is a Calgary, Alberta-based company focused on
developing major oil sands projects in Canada using our proprietary
OrCrude(TM) process. Our first project, Phase 1 of Long Lake, consists of
72,000 barrels per day of SAGD (steam assisted gravity drainage) oil
production integrated with an upgrading facility. The upgrader uses the
OrCrude(TM) process combined with commercially available hydrocracking and
gasification. Through gasification, this configuration substantially reduces
the exposure to and the need to purchase natural gas. On a 100 percent basis,
the Project is expected to produce 58,500 bbl/d of products, primarily 39
degree API Premium Sweet Crude with low sulphur content, making it a highly
desirable refinery feedstock. Due to its premium characteristics, we expect
PSC(TM) to sell at a price similar to West Texas Intermediate (WTI) crude oil.
The Long Lake Project is being operated in a joint venture with Nexen Inc.
OPTI holds a 35 percent working interest in the joint venture. OPTI's common
shares trade on the Toronto Stock Exchange under the symbol OPC.
Additional information regarding the Long Lake Project is available at
http://www.longlake.ca.
Forward-Looking Statements
Certain statements contained herein are forward-looking statements,
including statements relating to: OPTI's operations; business prospects,
expansion plans and strategies; OPTI's plans and expectations concerning the
use and performance of the OrCrude(TM) process and other related technologies;
the cost, development and operation of the Long Lake Project and OPTI's
relationship with Nexen Inc. Forward-looking information typically contains
statements with words such as "intends," "anticipate," "estimate," "expect,"
"potential," "could," "plan" or similar words suggesting future outcomes.
Readers are cautioned not to place undue reliance on forward-looking
information because it is possible that expectations, predictions, forecasts,
projections and other forms of forward-looking information will not be
achieved by OPTI. By its nature, forward-looking information involves numerous
assumptions, inherent risks and uncertainties. A change in any one of these
factors could cause actual events or results to differ materially from those
projected in the forward-looking information. Although OPTI believes that the
expectations reflected in such forward-looking statements are reasonable, OPTI
can give no assurance that such expectations will prove to be correct.
Forward-looking statements are based on current expectations, estimates and
projections that involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by OPTI and
described in the forward-looking statements or information. The
forward-looking statements are based on a number of assumptions which may
prove to be incorrect. In addition to other assumptions identified herein, we
have made assumptions regarding, among other things: market costs and other
variables affecting operating costs of the Project; the ability of the Long
Lake joint venture partners to obtain equipment, services and supplies,
including labour, in a timely and cost-effective manner; the availability and
costs of financing; oil prices and market price for the PSC(TM) output of the
OrCrude(TM) Upgrader; foreign currency exchange rates and hedging risks;
government regulations and royalty regimes; the degree of risk that
governmental approvals may be delayed or withheld; other risks and
uncertainties described elsewhere in this document or in OPTI's other filings
with Canadian securities authorities.
Readers should be aware that the list of factors, risks and uncertainties
set forth above are not exhaustive. Readers should refer to OPTI's current
Annual Information Form, which is available at www.sedar.com, for a detailed
discussion of these factors, risks and uncertainties. The forward-looking
statements or information contained in this news release are made as of the
date hereof and OPTI undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable laws
or regulatory policies.
%CIK: 0001177446
/For further information: OPTI Canada Inc., Suite 2100, 555 - 4th Ave.
S.W., Calgary, Alberta, Canada, T2P 3E7, (403) 249-9425/
(OPC.)
CO: OPTI Canada Inc.
CNW 16:35e 03-NOV-09
