Alberta Oilsands increases Clearwater West resources
2009-07-27 12:59 ET - News Release
Shares issued 62,327,775
AOS Close 2009-07-24 C$ 0.28
Mr. Shabir Premji reports
CLEARWATER PROJECT: ALBERTA OILSANDS INC. ANNOUNCES INCREASE IN ASSIGNED CONTINGENT RESOURCES AT ITS CLEARWATER WEST FORT MCMURRAY PROPERTY
Ryder Scott Company Canada Petroleum Consultants has completed a resource assessment update report on the total contingent resources on Alberta Oilsands Inc.'s Fort McMurray Clearwater West property. The report, effective June 1, 2009, estimates that AOS's Clearwater West property contains a total of 182.5 million barrels of best estimate contingent bitumen resources. With this update, Ryder Scott has assigned additional contingent resources to the Fort McMurray Clearwater West property of 30.9 million barrels of bitumen, an increase of 20.4 per cent.
INDEPENDENT CONTINGENT RESOURCES ESTIMATE
The following table summarizes the total contingent resources assignment
history estimate at the Fort McMurray Clearwater property.
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Independent Best Estimate Contingent Clearwater
Resource Assignments
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West East North Total
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Contingent Resources June 1, 2008 151.6 131.6 36.8 320.0
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Additional Assignment June 1, 2009 30.9 - - 30.9
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Total Best Estimate Contingent
Resources June 2009 182.5 131.6 36.8 350.9
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There is no certainty that it will be commercially viable to produce any portion of the resources described above. For important information regarding the disclosure of resource estimates, including the definitions of "Contingent Resources", please the section entitled "Important Information Regarding the Disclosure of Resources" below.
The increase is noted in a National Instrument 51-101 ("51-101") compliant assessment of the bitumen resources for the property, effective June 1, 2009. This additional assignment represents a 20% increase in contingent resources from the June 1, 2008 report at Clearwater West which now has 22 core holes within the project area. No June 1, 2009 update was completed at Clearwater East or North as no additional delineation drilling was done in these areas since the last report. Total "best estimate" contingent resources of 351 MMB include both primary and secondary contingent resources. The report is an update that constitutes only a portion of AOS's 100% owned interests within the project area. Ryder Scott obtained and interpreted mechanical well logs, core analysis, core photographs, and lithological information. Other data supplied included interpreted formation imaging logs from four wells, Mini-Frac reports from two wells, cap rock study results from one well and interpreted ERT (electro-resistivity tomography) data from the Clearwater West Project area.
A cap rock study by Hycal Energy Research Laboratories Ltd. on well AA/12-22-088-08W4 was commissioned by AOS as part of their 2009 winter drilling program. The testing was carried out on two shale samples, one above the Wabiskaw/McMurray Formations (main cap rock) and one that separates the Wabiskaw Formation from the McMurray Formation (secondary cap rock). The secondary cap rock is co-relatable over the Clearwater West Project area. The results of the study indicate that both the primary and secondary cap rock overlying the McMurray oil sands in the Clearwater West Project area provide an adequate seal at estimated steam chamber temperature conditions. Also obtained by AOS as part of the 2009 winter drilling program were several ERT lines over the Clearwater West Project area. The results of the ERT program illustrate that the primary cap rock is aerially extensive and would be sufficient as a containment seal for high pressure steam used in SAGD operations.
AOS also commissioned an independent 3-D geological model using the state of the art PETREL workflow with input from all 22 core holes. The volumetric from this model supports the Ryder Scott assignment of contingent resource.
The Clearwater West area is now fully delineated (10 wells per section) and AOS plans to submit an application by the end of Q3-2009 for a first phase 2,000 barrel per day pilot project application and a second phase 10,000 barrel per day commercial project.
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