Canadian Oil Sands says it is reviewing alternatives to Suncor bid

Canadian Oil Sands (OTCQX:COSWF) reiterates its rejection of Suncor Energy's (NYSE:SU) hostile takeover offer, and says it is considering alternatives, including a potential sale of the company or a merger or partnership with a strategic or financial partner.

Suncor produced 430,300 bpd from the oil sands in the third quarter of 2015, compared to 411,700 bpd a year earlier and cash operating costs per barrel for oil sands operations dropped to C$27 a barrel in the third quarter of 2015, down from C$31.10 a barrel.

Suncor has managed to run its upgrading operations that process oil-sands bitumen into light crude at more than 90 percent of capacity this year, compared with an average 70 per cent for Syncrude, the company said Wednesday after the close of trading.

Suncor is the first major Canadian energy producer to post earnings for the quarter, but its weak results are expected to be replicated by peers reporting later this week, including Canadian Oil Sands Ltd., Inc. and Husky Energy Inc.

Williams said COS shareholders should make their own decisions.

Cash flow from operations, which is adjusted to exclude one-time items, slid 73% to C$82 million, or C$0.17 a share, down from C$302 million, or C$0.62 per share, a year ago. Most recently, a fire in late August damaged pipes, power and communication lines, leading to reduced output during the third quarter. And then there were hiccups restarting it.

CALGARY, Alberta Oct 29 Canadian Oil Sands Ltd, the biggest shareholder in the Syncrude project, on Thursday reported a third-quarter net loss, mainly due to unrealized foreign exchange losses on USA dollar-denominated debt.

"We have been disappointed with Syncrude's performance for a few time now", said Williams. Suncor discussed the hostile bid with Imperial Oil as a "matter of courtesy" after it was announced, Williams said, calling Imperial a "very competent operator".