Canadian Oil Sands Trust announces its 2003 budget.

Publication: PR Newswire

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COPYRIGHT 2002 PR Newswire Association LLC

(TSX -- COS.UN) - Canadian Oil Sands Trust (the "Trust" or "Canadian Oil Sands") today announced its 2003 operating budget and Stage 3 expansion capital budget.

The highlights of the 2003 operating budget include a production forecast for Syncrude of 85 million barrels of Syncrude Sweet Blend ("SSB") for an average of 50,600 barrels per day net to the Trust. The Trust is expecting a budget operating cost averaging approximately $16.50 per barrel in 2003. This total estimated cost includes a budget production cost, excluding energy, of $258 million net to the Trust, or an average of approximately $14.00 per barrel. The production forecast and operating costs include one coker turnaround, which is scheduled for the first quarter of 2003. Purchased energy, comprised primarily of natural gas at approximately 0.6 thousand cubic feet per barrel of SSB produced, is expected to total $44 million, or an average of approximately $2.40 per barrel, excluding hedges. Additional expenses related primarily to the start-up of the Stage 3 Aurora 2 mining train are anticipated to add approximately $0.10 per barrel.

The Trust's capital budget for 2003 is anticipated to reach $483 million, and has been approved by Canadian Oil Sands' Board of Directors. The Stage 3 expansion represents $410 million of this total, and the balance represents "Sustaining"...

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