UTS sells oilsands properties for $250M
Last Updated: Monday, November 2, 2009 | 3:02 PM MT
CBC News
Calgary-based UTS Energy Corp. said Monday it expects to get $200 million after taxes from the sale of its half-interest in three oilsands leases in northern Alberta.
The oilsands company announced Monday it is selling the properties to Imperial Oil and its parent company, ExxonMobil, for $250 million.
UTS bought the land, situated east of the Firebag River, in three different lots between late 2006 and this year.
The company is a partner with Suncor and Teck Resources on the Fort Hills oilsands project. It and Teck each have 20 per cent, and Suncor operates the project.
Andrew Potter, an analyst with Swiss bank UBS, said the deal leaves the company "strongly funded" with $440 million in cash and "well positioned to respond to any needs [to increase investment] associated with the Fort Hills Project or take advantage of [other] opportunities as they arise."
UTS shares closed up six cents, or three per cent, to $2.10 Monday on the Toronto Stock Exchange.
