AER orders Sunshine Oilsands Ltd. to suspend all wells, facilities and pipelines

Nov 18, 2024

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On November 14, 2024, the Alberta Energy Regulator AER) issued an order requiring Sunshine Oilsands Ltd. to suspend its wells, facilities, and pipelines; post a security deposit; and provide reasonable care and measures for its sites as the company has repeatedly failed to comply with regulatory requirements and address compliance issues in a timely manner. The press release was issued on Nov. 18.

The AER’s order requires Sunshine Oilsands to take a number of actions:

  • Suspend all wells, facilities, and pipelines.
  • Immediately report any hazards that present a risk to public safety or the environment.
  • Ensure that any containment devices or equipment are depressurized, emptied, and rendered safe in a manner sufficient for winter conditions and acceptable to the AER.
  • Submit a reasonable care and measures plan to demonstrate that reasonable care and measures are being provided at the sites.
  • Post a security deposit in the amount of $6 091 318, which represents 100% of Sunshine’s estimated inactive liability.

“The AER has issued this order to ensure that the sites licensed to Sunshine Oilsands will not pose a risk to public safety or the environment. Failure to comply with this order may result in escalation of enforcement, which could include an abandonment order,” the release said.

A copy of the order issued to Sunshine Oilsands can be found on the AER’s Compliance Dashboard.

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Sunshine’s website, as of Nov. 18, stated in its most recent post:,

October 31, 2024

EXTENSION OF CLOSING DATE FOR ISSUANCE OF NEW SHARES UNDER GENERAL MANDATE

Reference is made to the announcements of Sunshine Oilsands Ltd. (the “Company”) (HKEX: 2012) dated May 10, 2024, June 7, 2024, July 31, 2024, August 30, 2024 and September 30, 2024 (the “Announcements”) in relation to, among others, the proposed issuance of 48,695,736 Relevant Shares of the Company to the Creditor as full and final settlement of the Debt Payable under the General Mandate pursuant to the Settlement Agreement.  Unless otherwise defined, capitalised terms used herein have the same meanings as defined in the Announcements.
EXTENSION OF CLOSING DATE
As mentioned in the Announcement dated September 30, 2024, the Company was required to provide information, among others, the rationale and background of the transaction, the information about the Creditor, etc. to the Canadian regulatory authority. As at the date hereof, the Company is awaiting for their feedback, if any. Given that the Company and the Creditor entered into a fifth supplemental agreement (the “Fifth Supplemental Agreement”) on October 31, 2024, whereby the parties agreed to extend the closing date from October 31, 2024 to November 30, 2024 (or such later date as may be agreed between the Company and the Creditor).
Save as the aforesaid change, all other terms and conditions of the Settlement Agreement remain in full force and effect.

   By Order of the Board of Sunshine Oilsands Ltd.

Kwok Ping Sun
Executive Chairman

Hong Kong, October 31, 2024

Calgary, October 31, 2024

As at the date of this announcement, the Board consists of Mr. Kwok Ping Sun and Ms. Gloria Pui Yun Ho as executive directors; Mr. Michael John Hibberd, Ms. Linna Liu and Ms. Xijuan Jiang as non-executive directors; and Mr. Yi He, Ms. Jue Pang and Mr. Guangzhong Xing as independent non-executive directors.

*For identification purposes only   

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