News from The Globe and Mail

Wednesday, May 14, 2008

UTS Energy Corp., the part owner of a $14.1-billion oil-sands project, may seek financing from pension and sovereign funds to finance its share of costs to extract oil from Alberta's tar sands. The Calgary-based company may raise as much as $1.8-billion by the first half of next year, chief financial officer Wayne Bobye said yesterday. "UTS believes the $1.8-billion will be financed in the debt market, primarily based on positive discussions we've had with the banking community," he said on a conference call. "Another source that we're going to start initiating discussions with is the sovereign oil funds, primarily for debt financing." Pension funds are another option, he said. About $1.5-billion is needed for UTS's share of Fort Hills and $150-million for other projects, he said. UTS owns 20 per cent of the Fort Hills project. UTS (TSX) fell 18 cents to $5.50.

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