Cash please AOS-V we're take it brown plastic.
News Release - Nov 28, 2013
Alberta Oilsands Inc. has submitted its application to the government of Alberta for compensation stipulated under the Mineral Rights Compensation Regulation. The claim submission is in the amount of $56-million.
The claim submission is a result of the Province of Alberta (oil sands division) advising the company that certain of its Clearwater oil sands leases within the Fort McMurray urban development subregion will be cancelled.
Pursuant to the provisions of the compensation regulation, AOS is eligible for compensation relating to the following costs incurred by the company in connection with the development of its cancelled Clearwater project:
- The amount of money paid to the Crown which includes bonus bids, rental amounts and application fees of approximately $5,928,000;
- A development allowance of approximately $41,931,000 comprising costs for drilling, 2-D and 3-D seismic, engineering, ERCB application, facility design and the rest;
- The company is also eligible for a reclamation allowance in respect of abandonment and reclamation costs associated with wells located in the cancelled lease areas. The reclamation costs will be determined at a later date;
- An interest allowance (Alberta Treasury Board prime rate plus 1 per cent). AOS has calculated the interest allowance on the claim amount to be approximately $8,382,000.
Binh Vu stated, "Alberta Oilsands anticipates that the government will fulfill its obligations under the Mineral Rights Compensation Regulation in a judicious and expeditious manner."
Other news
The company also announced that it has terminated the Algar Lake farm-out agreement with Crescendo Resources. AOS will review and pursue other opportunities to develop and/or monetize Algar Lake.
In Africa, the company continues to evaluate and optimize targets within its prospective property packages. |
