Exhibit 99.1
News release via Canada NewsWire, Calgary 403-269-7605
Attention Business Editors:
OPTI Canada Announces Proposed Financing Plan and Production Update
TSX: OPC
CALGARY, Nov. 16 /CNW/ - OPTI Canada Inc ("OPTI" or "the Company")
announced today that it intends to offer by way of private placement US$425
million of First Lien Senior Secured Notes ("Notes"). The purpose of the
private offering is to establish sufficient liquidity and flexibility for the
company to proceed with its previously announced review of strategic
alternatives process.
OPTI also announced that it had received aggregate commitments of
approximately $159 million with respect to an amended and reduced revolving
credit facility, which commitments are subject to the completion of the Notes
offering. The amended credit facility is not expected to contain a covenant
included in the existing facility based upon a ratio of indebtedness to
earnings before interest, tax, depreciation and amortization (EBITDA). OPTI
would retain the ability to increase the size of the new facility to $200
million by arranging future lending commitments.
Completion of these transactions is anticipated prior to the end of
November 2009 but remains subject to a number of conditions, including
agreement on final terms and conditions.
Production Update
Currently, steam injection at the Long Lake Project is approximately
75,000 bbl/d and, while early in the ramp-up process, bitumen production now
exceeds pre-turnaround levels and is approximately 15,000 bbl/d with 47 well
pairs on production, as of November 14, 2009. With the first sustaining well
pad successfully tied into the main SAGD facilities, a total of 91 well pairs
are now available for steam allowing for increased operational flexibility in
the optimization of bitumen production. The Upgrader is in operation and the
solvent deasphalting and thermal cracking units have also been restarted
post-turnaround.
ABOUT OPTI
OPTI Canada Inc. is a Calgary, Alberta-based company with a 35% working
interest in the Long Lake Project, which is operated by Nexen Inc. The first
phase of the Project consists of 72,000 barrels per day of SAGD (steam
assisted gravity drainage) oil production integrated with an OPTI-operated
upgrading facility, using OPTI's proprietary OrCrude(TM) process and
commercially available hydrocracking and gasification. Through gasification,
this configuration substantially reduces the exposure to and the need to
purchase natural gas. 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. OPTI's common shares
trade on the Toronto Stock Exchange under the symbol OPC.
This press release is not an offer of securities for sale in the United
States. Securities may not be offered or sold in the United States absent
registration or an exemption from registration. Any public offering of
securities to be made in the United States will be made by means of a
prospectus that may be obtained from OPTI and that will contain detailed
information about OPTI and management, as well as financial statements.
FORWARD LOOKING STATEMENTS
Certain statements contained herein are forward-looking statements,
including statements relating to: OPTI's operations; anticipated financial
performance; 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 "anticipate,"
"estimate," "expect," "potential," "could" 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., (403) 249-9425/
(OPC.)
CO: OPTI Canada Inc.
CNW 02:58e 16-NOV-09
