Canadian Oil Sands says no plan to sell future production

Wed Sep 9, 2015 12:44pm EDT
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By Nia Williams

CALGARY, Alberta, Sept 9 (Reuters) - Canadian Oil Sands Ltd , the largest stakeholder in the Syncrude oil sands project, said on Wednesday it had reviewed selling a small portion of its future production but decided against the option for now.

COS spokeswoman Siren Fisekci said a sale would have involved a small percentage of revenues COS generates from crude production in a exchange for a one-time payment.

She declined to comment on a Wall Street Journal report that the company had spoken with Boston-based hedge fund Highfields Capital Management, a COS shareholder, about selling future production to bolster its finances.

"We have evaluated it in light of what other companies have done," Fisekci said, citing recent sales by Cenovus Energy Inc and Encana Corp of freehold royalty properties to raise cash.

"Our view is that we do not need additional funding but it remains an option available."

COS owns 37 percent of the Syncrude project in northern Alberta, which produced just over 300,000 barrels per day of light, sweet synthetic crude last month.

Like most other Canadian oil and gas producers the company has been hard hit by a slump in global crude prices.

COS shares edged down 7 Canadian cents on the Toronto Stock Exchange to C$6.46 shortly after midday. The stock has plunged more than 70 percent since June 2014 when crude prices first started to slide.

(Reporting by Nia Williams; Editing by Richard Chang)