As the price of oil keeps hitting new highs, it makes our wallets smaller and smaller leaving us with cents only for a coffee and a muffin. So it makes other people to come up with ideas that could revolutionize our lives. Oilsands Quest (AMEX: BQI) is one of many companies trying to find a way to stop this insane oil price drive.

So what Oilsands Quest is doing - is extracting oil from oil sands. They gave up on building up sand castle's so they could help us to get over oil price surge.

The Calgary-based company has a 100% interest in the Saskatchewan Oil Shale exploration as well as in the Alberta oil sands exploration permits comprising 67,053 acres.

"In 28 months we have gone from no one believing that there is oilsands in Saskatchewan to having a resource of over 1.5 billion barrels," Errin Kimball, vice-president of exploration.

It seems everything is like in a fairy tale for Oilsands Quest. Very promising future drawn for the company. But there some aspects that could have an impact on the company's business plan at some point.

However, Oilsands Quest will have to sharpen its guns, as local environmentalists’ group have asked the provincial government to suspend oilsands exploration permits until a regional environmental assessment is completed in northwest Saskatchewan.

On the latest six-month financial report dated October 31, 2007 the company did not make a cent in revenues and was hammered with a loss of $26.6 million. In the same six-month period in 2006, revenue was also nil, but the net loss was larger — $35.6 million.

As of October 31, 2007, Oislands Quest had $49.6 million in cash and no long-term debt, compared with $32.4 million in cash.

Share price is also recovering and it could climb up to the new peak. Last time I checked, the share was sitting comfortably at $4.79.

All having said, the company has surely got a potential here to evolve into something huge. According to Alberta Energy Utilities Board, oil extracted from oil sands is expected to grow to 4.6 million barrels a day in 2015 and then to 4.9 million barrels a day by 2020.

Reference

www.oilsandsquest.com
Oilsands opponents emerge
Oilsands Quest's Balance Sheet