Alberta Oilsands Inc. announces operations update and contingent resource increase at the Fort McMurray property
Thu Apr 3, 9:25 AM
ca.news.finance.yahoo.com
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CALGARY, April 3 /CNW/ - Alberta Oilsands Inc. (the "Company" or "AOS") announces that the Company has drilled a total of 34 core holes in the 2007/2008 winter drilling season at its Clearwater and Hangingstone East/Halfway Creek properties. The Company also announces an increase in the amount of contingent resources assigned to its Fort McMurray properties as described in the details below.
FORT McMURRAY - CLEARWATER EAST AND WEST
AOS received approval from the ASRD (Alberta Sustainable Resources Development) to drill up to a total of 45 core locations on 10 sections of its 28 section contiguous land block in the Fort McMurray area. This approval confirmed accessibility to a minimum of 10 sections on the parcel. AOS has completed coring of 15 wells: nine wells in the Clearwater East and six wells in the Clearwater West area. Preliminary results are positive, indicating gross pay range of 15 to 50 meters, weighted mostly to the high end of the range. Core analysis results are expected in the coming weeks and will confirm the size of potential commercial projects on the Clearwater properties. Drilling and coring activities resulted in an average of 4 wells per section and have been completed on March 26, 2008.
HANGINGSTONE EAST - HALFWAY CREEK
AOS, in conjunction with Great Divide Oil Sands Partnership ("GDOSP"), an affiliate of Connacher Oil and Gas Ltd. ("Connacher"), acquired approximately 89 kilometers of 2-D seismic and drilled a total of 19 core holes on the Hangingstone East/Halfway Creek property. On February 25, 2008, the Company announced completion of a strategic pooling of 38.5 sections (24,640 acres) of contiguous oil sands rights situated southwest of Fort McMurray in the Twp 86 Rge 9 and 10 W4M. Details of the agreement were outlined in the company news release on that date. The transaction facilitates AOS's goal of rapid development of its Hangingstone East/Halfway Creek asset. AOS received an equalization payment and also gained access to 15.5 sections of additional gross contiguous lands with this pooling.
CONTINGENT RESOURCE INCREASE
As a result of the ASRD approval, successful well licensing and confirmed accessibility, Ryder Scott Company Canada, Petroleum Consultants ("Ryder Scott"), an independent petroleum consulting firm, has assigned additional contingent resources of 15 million barrels (MMB) of bitumen to AOS's Fort McMurray property. This brings the total AOS Fort McMurray Clearwater property contingent resources assignment to 216 MMB, a 7.5% increase.
The following table summarizes total contingent resources assignments to date.
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Total Contingent
Contingent Resources Assignment Resources Volume
(million barrels)
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Original Assignment - October 01, 2007 201
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Additional Assignment - March 05, 2008 15
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Total Fort McMurray Property to Date 216
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The contingent resource increase is noted in a recent Ryder Scott supplemental bitumen resource assessment dated effective March 5, 2008. AOS has previously disclosed that the Fort McMurray property was assigned 201 MMB of contingent resources to a portion of the 28 sections of lands in a National Instrument 51-101 ("51-101") compliant report.
There is no certainty that it will be commercially viable for AOS to produce any portion of the volumes currently classified as "contingent resources". The primary contingencies which currently prevent the classification of AOS' disclosed contingent resources associated with its Fort-McMurray properties as "reserves" consist of: current uncertainties around the specific scope and timing of the development of the its Fort-McMurray properties; proposed reliance on technologies that have not yet been demonstrated to be commercially applicable in oil sands applications; lack of regulatory approvals; the uncertainty regarding marketing plans for production from the subject areas; and improved estimation of project costs. There are a number of inherent risks and contingencies associated with such development, including commodity price fluctuations, project costs and those other risks and contingencies discussed in more detail in AOS' management discussion and analysis for the year ended December 31, 2006. For a description of the definition of, and the risks and uncertainties surrounding the disclosure of, contingent resources, see "Disclosure of Contingent Resources" below.
Alberta Oilsands Inc. is a technically driven, high growth energy company focused on creating long term sustainable value through the rapid delineation of the oil sands resources located on the Company's lands.
Disclosure of Contingent Resources
"Resources" are quantities of petroleum that are estimated to exist originally in naturally occurring accumulations, including the quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered.
"Contingent resources" are defined as those quantities of petroleum estimated, on a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as "contingent resources" the estimated discovered recoverable quantities associated with a project in the early project stage.
Resources and contingent resources do not constitute, and should not be
confused with, reserves.
Forward-Looking Statements: This press release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law including management's assessment of the Company's properties, production and prospects. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of oil sands properties, the uncertainties involved in interpreting drilling results and other geological data, the possibility that royalties and other government levies could be increased, fluctuating oil prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors including unforeseen delays. As an oil sands focused enterprise, the Company faces risks, including those associated with exploration, development, approvals and the ability to access sufficient capital from external sources. Anticipated exploration and development plans relating to the Company's properties are subject to change. For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's annual financial statements and management discussion and analysis for the year ended December 31, 2006, both of which are available at www.sedar.com. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this release.
Not for dissemination in the United States of America. This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities of the Company in any jurisdiction, including the United States. The common shares of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and have not been and will not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Contacts
Alberta Oilsands Inc.
Suite 2800
350 - 7th Avenue S.W.
Calgary
Alberta
T2P 3N9
Shabir Premji
Executive Chairman
T: (403) 232-3341
F: (403) 263-6702
spremji@aboilsands.ca
or Chad Dust
Executive Vice President Finance and Business Development
T: (403) 538-3191
F: (403) 263-6702
cdust@aboilsands.ca
Company website: www.aboilsands.ca |
