Even with oil priced below $50 per barrel, Canadian Oil Sands, a target of a takeover bid, said it will be able to stay in the black under a 2016 budget plan

The company, a majority stakeholder in the giant Syncrude oil sands production facility in Alberta, said it aims to produce at least 35 million barrels of oil next year, about 10 percent higher than the full-year estimate for 2015. Capital expenses are estimated at $220 million.

"Even under a $45 per barrel oil price assumption, the company can fully fund all costs, including capital expenditures and the current dividend," it said in a statement. "Canadian Oil Sands Ltd. offers one of the best ways to benefit from a recovery in oil prices, as its share price has historically demonstrated a 98 percent correlation to crude oil prices."

The company is fighting off a takeover bid from Syncrude minority shareholder Suncor, which unveiled a $3.2 billion move in October. Canadian Oil Sands said the offer, as it stands, grossly undervalues the company.

"The positive implications to the business going forward are just starting to be appreciated and will have lasting value," President and Chief Executive Officer Ryan Kubik said. "Now, our shareholders can capture the value of an improved Syncrude business."

In December 2014, the company said it was forced to cut back on spending because of the low price of oil. Crude oil prices are about 40 percent lower than on this date last year.

There was no statement in response to the company's budget from Suncor. Suncor in November said its production target for 2016 was "slightly reduced" from this year. Canadian Oil Sands said this week it was considering whether to continue as an independent company or aggressively examine "superior offers from other parties."

Anadarko reviewing penalty for Gulf oil spill
New Orleans (UPI) Dec 2, 2015 -Anadarko Petroleum said it was reviewing its appellate options in the wake of a $159.9 million penalty tied to the 2010 oil spill in the Gulf of Mexico.

Anadarko held a 25-percent stake in the Macondo well that failed, triggering the cascading series of events that led to the fatal Deepwater Horizon oil spill in the Gulf of Mexico. U.S. District Judge Carl Barbier in New Orleans charged the company a penalty of $159.9 million for its part in the consortium behind the spill.

Andadarko, in a statement, said it was pleased the ruling came in less than anticipated, adding it removed any uncertainties surrounding its legal liability in the case. The company said that, while it respects the decision, it was frustrated with being penalized for actions that, as a non-operator, were beyond its control.

"We are carefully evaluating our appellate options," it said in a statement.

Anadarko held a minority stake in the Macondo well beneath the Deepwater Horizon rig in the Gulf of Mexico. The district court in Louisiana ruled in September that it was BP's activities at the Macondo well that amounted to willful misconduct.

Barbier was cited by the Houston Chronicle as saying there was "seemingly" no reason to penalize Anadarko for the incident.

"On the other hand, a substantial penalty might make Anadarko and other non-operators more selective when choosing an operator with whom to invest," he wrote in his ruling.

The U.S. Supreme Court refused to hear two separate cases filed by BP and Anadarko Petroleum challenging fines related to the 2010 oil spill in the Gulf of Mexico early this year.