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[fearles]

Lattes already posted this but his posts have disappeared.

With the recent lows we've been having it is a good buy but you probably have to wait till September. Right now it is around $2.60 but could easily be $5-6 when they get up to 40k bpd. If you want to play with call options you can buy $3.00 calls.

Trading was halted today so something is up.

Investment Industry Regulatory Organization of Canada - Trading Halt - OPTI Canada Inc. - OPC
Investment Industry Regulatory Organization of Canada - Trading Halt - OPTI Canada Inc. - OPC

TORONTO, June 23 /CNW/ - The following issues have been halted by Investment Industry Regulatory Organization of Canada (IIROC):

Issuer Name: OPTI Canada Inc.

TSX Ticker Symbol: OPC

Time of Halt: 15:00pm ET

Reason for Halt: Pending News

Source: CNW (June 23, 2009 - 3:09 PM EDT)

News by QuoteMedia

[fearles]

OPTI Announces Equity Offering, Financial and Project Update
Last Update: 6/23/2009 3:56:00 PM

CALGARY, Jun 23, 2009 (Canada NewsWire via COMTEX) -- /NOT FOR
DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES/

TSX: OPC

CALGARY, June 23 /CNW/ - OPTI Canada Inc. ("OPTI" or the "Company")
announced today that it has filed a preliminary short form prospectus
(the "Prospectus") in Canada in connection with a marketed public
offering (the "Offering") of common shares of OPTI (the "Common
Shares"). The Company intends to conduct the Offering through a
syndicate of underwriters led by TD Securities Inc., Credit Suisse
Securities (Canada), Inc., and RBC Capital Markets as joint
bookrunners.

The Offering will be priced in the context of the market with the
final terms of the Offering to be determined at the time of pricing.
The Common Shares will be offered in all of the provinces of Canada
and on a private placement basis in the United States pursuant to
exemptions from the registration requirements of the United States
Securities Act of 1933, as amended, (the "1933 Act") and other such
jurisdictions as may be agreed to by the Company and the Underwriters.
The Offering is scheduled to close on or about July 9, 2009 and is
subject to certain customary conditions and regulatory approvals,
including but not limited to the approval of the Toronto Stock
Exchange.

OPTI intends to use a portion of the net proceeds from the Offering to
fund its remaining $50 million of forecast capital expenditures for
2009. The remainder of the proceeds are expected to be used to fund
working capital requirements and a portion may be used to reduce
indebtedness under OPTI's $350 million revolving credit facility
("Revolving Credit Facility"). Under the terms of OPTI's Revolving
Credit Facility, OPTI may repay amounts owing and, subject to
satisfying a number of conditions precedent prior to each borrowing,
make new borrowings.

Financial Update

On June 22, 2009, OPTI had financial resources of approximately $360
million consisting of $332 million of cash and $28 million of undrawn
funds under the Revolving Credit Facility. Prior to December 31, 2009,
OPTI is forecasting approximately $50 million for remaining 2009
capital expenditures, $80 million for the remaining interest payments
on its senior secured notes and approximately $40 million for working
capital requirements. OPTI expects its financial resources at December
31, 2009 will be approximately $190 million, prior to the impact of
net operating cash flow from the Long Lake Project and the net
proceeds from this Offering. Based on our current production,
operations and commodity price assumptions, OPTI expects that the net
proceeds of this offering, together with existing financial resources,
will provide sufficient financial resources until full production is
reached for the Long Lake Project of 72,000 bbl/d of bitumen by the
end of 2010.

OPTI's Revolving Credit Facility debt to EBITDA covenant, which is
measured quarterly, commences at the end of the third quarter of 2009.
OPTI intends to repay the Revolving Credit Facility (whether
temporarily or permanently) to the extent required to satisfy this
covenant. With the net proceeds from this offering, assuming
production reaches full capacity by the end of 2010, and using the
current forward strip pricing for WTI pricing and foreign exchange
rates, OPTI expects to be able to meet the covenant as it is currently
structured until the maturity of the Revolving Credit Facility.
However, to provide greater certainty of meeting this covenant, OPTI
plans to seek an amendment to the covenant. OPTI has already commenced
discussions with certain key lenders including the administrative
agent under its Revolving Credit Facility, and upon completion of this
offering, OPTI plans to broaden these discussions to include the other
members of OPTI's banking syndicate with the objective of reaching an
agreement to defer and amend this covenant prior to it becoming
operative.

Project Update

Progress continues to be made in the start-up phase of the Long Lake
Project. The Long Lake reservoir is performing as OPTI expected, given
the amount of steam that has been injected into the reservoir. Steam
injection has been limited to date by the ability to treat water
during the ramp-up period. Nexen Inc. (the "Operator") successfully
completed a project to add supplementary heat to the hot lime
softeners ("HLSs") in the water treatment plant in May 2009. The
Operator also recently completed maintenance work on both HLSs to
remove deposits which typically build up in water treatment plants and
both HLSs are now in operation.

The SAGD plant has resumed ramping up with recent steam injection
rates of approximately 95,000 bbl/d and bitumen production rates of
approximately 18,000 bbl/d. SAGD production in the second quarter
through mid-June has averaged approximately 13,500 bbl/d. As of June
22, 2009 there were 36 wells on production. With inconsistent steam
injection, the steam to oil ratio ("SOR") has ranged between 4.5 and
6.0 in the second quarter. OPTI continues to expect a long term SOR of
3.0.

The Operator recently identified a number of small modifications to be
made in the third quarter of 2009 to further optimize the water
treatment facility. OPTI expects the cost of these modifications will
not be significant and will result in a minimal period of down time
for bitumen and PSC(TM) production.

As steam generation increases, the Operator intends to convert all
remaining wells to production mode. OPTI expects SAGD volumes to
increase from current production to full capacity of 72,000 bbl/d of
bitumen in late 2010. During the SAGD ramp-up period in 2009 and 2010,
OPTI also expect to process third party bitumen.

All major process units in the Upgrader are operational, and
preparation is underway to transition gasifier feed from vacuum
residue to ashphaltenes, the final step in OrCrude(TM) commissioning.
OPTI expects this transition to occur shortly, increasing the yield of
PSC(TM). The Upgrader has produced over 600,000 bbls of PSC(TM) to
date. The PSC(TM) which has been marketed has been sold at pricing
equal to or above pricing for other synthetic crude oils. Synthesis
gas from the Upgrader has been used in SAGD operations, decreasing
operating costs by reducing the requirement for purchased third-party
natural gas. During the initial operating period, OPTI expects periods
of downtime but anticipates that the stability of operations will
continue to improve. OPTI expects Upgrader capacity during ramp-up
will be capable of processing all of the forecasted SAGD volumes and
OPTI expects the Project to reach full capacity of approximately
58,500 bbl/d of PSC(TM) and other products in late 2010.

Conference Call

OPTI will host a conference call at 3:00 p.m. Mountain Time (5:00 p.m.
Eastern Time) on Tuesday, June 23, 2009 to provide a corporate update.
Chris Slubicki, President and Chief Executive Officer, and Travis
Beatty, Chief Financial Officer, will host the call.

[mrdbldub]

Opti (OPC) has massive debt and must soon make a large interest payment on that debt or else sell another percentage of their share in the Long Lake project to Nexen(NXY) TSX. Sounds like desperate days.

[Frank Drebin]

Can someone enlighten me to what this means? Basically OPTI is offering up more shares, diluting the value of the current shares to raise money? What kind of effect will this have on share price? I don't necessarily see this as a bad thing if the shares are offered at close to the current price...gives the company a better long term output or am I way off base here?

[fearles]

This is a little disappointing as it seemed like that had enough cash to survive and lots of other jr oil companies have been getting good financing deals. On the other hand their process really does work and their short-medium term success depends on them reaching 40k bpd.

[Frank Drebin]

So when does trading resume for Opti? Curious as to what the opening price will be.

[fearles]

me too.

[foldhero]

Here you go, the public offering price is $1.7.

The stock just resumed trading and now it is trading at $2, dropped from the price before trade halt at $2.6.

My wild guess is, the price will go back to 2.6 at the end of today!! because the stock is not a normal stock.

[fearles]

What the hell are they thinking try to offer a 20% discount without going to the shareholders?

[fearles]

What a screw up by management. They are going broke and taking us with them.