Sherritt Provides Update on its Oil and Gas Operations
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OR FOR DISSEMINATION IN THE UNITED STATES
Sherritt Provides Update on its Oil and Gas Operations
TORONTO, December 22, 2017 – Sherritt International Corporation (“Sherritt”) (TSX:S) today announced that it has
extended the timetable for its current activities on Block 10 to the first quarter of 2018. The decision allows the
Company to evaluate drilling results completed to da te and determine its best option to reach the target Lower Veloz
reservoir, in which a discovery well drilled in 1994 had briefly tested at a rate of 3,750 barrels of oil per day.
“While we had expected to complete drilling on Block 10 before end of year, we have decided to take a prudent
approach instead of pushing ahead given the challenges we have experienced in the lost circulation zone above the
target reservoir,” said David Pathe, President and CEO of Sherritt International Ltd. “We expect to resume drilling in
the New Year after we have evaluated our options and determined our best course of action. Our recent experience
has not changed our view about Block 10’s potential.”
Block 10 is an oil and gas exploration concession licensed for 25 years under a P roduction Sharing Contract (PSC)
between Sherritt and Cuba’s state oil c ompany, Cubapetroleo S.A. (CUPET ). Block 10 covers an area of 261km 2 in
the Bay of Cardenas located on Cuba’s north coast.
Lost circulation zones may b e encountered during dril ling operations. In these zones, drilling fluids, which are
pumped into the well, feed into rock formations in stead of returning to surface. Cement and other materials are
regularly used to plug off the lost circulation zone so that drilling can continue. The presence of l ost circulation zones
adds complexity to drilling operations.
Sherritt also announced that negotiations are in progress with CUPET to extend the PSC for the Puerto Escondido
and Yumuri PSC, which is set to expire in March 2018. Sherritt ’s PSC for Vardero West, which expired in November
2017, has reverted to the Cuban state.
About Sherritt
Sherritt, which is celebrating its 90th anniversary in 2017, is the world leader in the mining and refining of nickel from
lateritic ores with projects and operations in Canada, Cuba and Madagascar. The Corporation is the largest
independent energy producer in Cuba, with extensive oil and power operations across the island. Sherritt licenses its
proprietary technologies and provides metallurgical services to mining and refining operations worldwide. The
Corporation’s common shares are listed on the Toronto Stock Exchange under the symbol “S”.
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For more information, please contact:
Joe Racanelli, Director of Investor Relations
Telephone: 416-935-2451
Toll-Free: 1-800-704-6698
Email: [email protected]
www.sherritt.com
Forward-Looking Statements
This press release contains certain forward-looking statements. Forward-looking statements can generally be
identified by the use of statements that include such words as “believe”, “expect”, “anticipate”, “intend”, “plan”,
“forecast”, “likely”, “may”, “will”, “could”, “should”, “suspect”, “outlook”, “projected”, “continue” or other similar words or
phrases. Specifically, forward-looking statements in this document include, but are not limited to, statements set out
in this press release relating to estimated timing of future events.
Forward-looking statements are not based on historic facts, but rather on current expectations, assumptions and
projections about future events, including matters relating to the matters disclosed herein; availability of
governmental, regulatory and third party approvals; and the ability to achieve corporate objectives, goals and plans.
By their nature, forward-looking statements require the Corporation to make assumptions and are subject to inherent
risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or projections will not prove to
be accurate, that those assumptions may not be correct and that actual results may differ materially from such
predictions, forecasts, conclusions or projections.
The Corporation cautions readers of this press release not to place undue reliance on any forward-looking statement
as a number of factors could cause actual future results, conditions, actions or events to differ materially from the
targets, expectations, estimates or intentions expressed in the forward-looking statements. These risks, uncertainties
and other factors include, but are not limited to the risks and uncertainties set out the Corporation’s Annual
Information Form dated March 28, 2017, which is available on SEDAR at www.sedar.com. Readers are cautioned
that the foregoing list of factors is not exhaustive and should be considered in conjunction with the risk factors
described in this press release and in the Corporation’s other documents filed with the Canadian securities
authorities.
The Corporation may, from time to time, make oral forward-looking statements. The Corporation advises that the
above paragraph and the risk factors described in this press release and in the Corporation’s other documents filed
with the Canadian securities authorities should be read for a description of certain factors that could cause the actual
results of the Corporation to differ materially from those in the oral forward-looking statements. The forward-looking
information and statements contained in this press release are made as of the date hereof and the Corporation
undertakes no obligation to update publicly or revise any oral or written forward-looking information or statements,
whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
The forward-looking information and statements contained herein are expressly qualified in their entirety by this
cautionary statement.