OPTI Canada Inc. is a Calgary, Alberta-based company, established in 1999 to develop major integrated bitumen and heavy oil projects in Canada using its proprietary, next-generation OrCrude™ process. OPTI is focused on developing the fourth major integrated oil sands project in Canada, Phase 1 of the Long Lake Project (the Project), in a joint venture with Nexen Inc. in which OPTI has a 35 percent working interest.

The Project is the first to utilize OPTI’s OrCrude™ process, integrated with proven gasification and hydrocracking processes. Through gasification, this configuration substantially reduces the exposure to and the need to purchase natural gas. Through these processes, the Project delivers one of the highest quality synthetic crude oils ever produced from the Canadian oil sands with very low operating costs at full production.

The first phase of the Project consists of 72,000 barrels per day of SAGD (steam assisted gravity drainage) oil production. The Project is expected to produce 58,500 barrels per day (bbl/d) of products, primarily 39° API Premium Sweet Crude (PSC™) with low sulphur content, which makes it a highly desirable refinery feedstock. Start-up of the Upgrader and production of first Premium Sweet Crude (PSC^TM) was announced on January 22, 2009.  We have a 35 percent working interest in the Project.

Our next development, Kinosis, is located south of the Long Lake lease. At Kinosis, we plan to stage our SAGD development prior to building an upgrading facility. We have regulatory approvals for Kinosis SAGD development for up to 140,000 bbl/d of bitumen production and we are evaluating building the SAGD projects in approximately 40,000 bbl/d bitumen stages. We intend to sanction the first stage of Kinosis in 2012. We have a 35 percent working interest in Kinosis.