MULTI-STAGED EXPANSION PROJECTS UNDER DEVELOPMENT

OPTI and its partner, Nexen, hold 259,000 acres of land in northern Alberta (90,650 net to OPTI).  This consists primarily of holdings in Long Lake with 71,000 gross acres where Phase 1 is currently developed and Kinosis will be developed, Leismer with 85,500 gross acres and Cottonwood with 90,000 gross acres. An additional 12,500 gross acres of land are also held by the partnership in the region. It is anticipated that these lands will support approximately 430,000 bbl/d (150,000 bbl/d net to OPTI), of bitumen production. Based on resource estimates, there is the potential for three 70,000 bbl/d developments at Long Lake, two 70,000 bbl/d developments at Leismer and one 70,000 bbl/d development at Cottonwood.

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 and intend to sanction the first stage in 2012. Additional stages of Kinosis SAGD will proceed thereafter. A second Upgrader would be built once sufficient bitumen rates from the Kinosis area have been reached and economic conditions support the development of upgrading.