Oilsands Project Near La Loche Put On Hold
Wednesday, August 18, 2010 at 13:39
A Calgary-based company is putting its oilsands development in northwest Saskatchewan on hold.
Oilsands Quest says it doesn’t have the “significant” capital required to advance its Axe Lake project near La Loche, nor the Wallace Creek project in Alberta.
The company says the time has come to seeking additional financing through a “strategic partner” — noting there have been recent expressions of interest received from third parties.
A special committee of company directors will explore all alternatives, including a joint venture, a merger or even a sale — but Oilsands Quest says there is no guarantee any of these scenarios will unfold.
The company also says there is no timetable for the review.
The chief of the nearby Clearwater River Dene Nation says the announcement won’t have an immediate impact on the band, since none of the band’s businesses are “connected substantially” to Oilsands Quest.
Roy Cheecham also notes his band has been asking the province to “slow things down” in the area of oilsands development — including calling for land use studies — so that “things are done in an orderly fashion” and include his First Nation.
La Loche Mayor Georgina Jolibois says the people in her community want the job and contract opportunities the Axe Lake project has provided — but they also have concerns about the need for job training, as well as environmental concerns.
Jolibois says a committee in the region will continue looking into the environmental impact of an oilsands project.