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AOS currently has two drilling rigs operating in the Peace River Arch area of Alberta and Wildmint, BC. AOS plans to drill 4 to 5 conventional wells in an exploration program targeting large gas reserves, with associated liquids, and light oil primarily in Slave Point carbonates and in shallower formations. AOS has earned a 50% working interest on 11 sections of land in this area through an existing farm-in on the property which is located between the
Immediately across the British Columbia border, at Wildmint, AOS is drilling a further Slave Point exploration well where the Company intends to earn 7.5 sections through an existing farm-in on a structural horst block which the Company expects to be analogous to the Buick Creek Slave Point pool which has cumulative production of 32 BCF (billion cubic feet)(1) to date. AOS has access to a further 17 sections of land, on the Peace River Arch, at Hines Creek, through a separate farm-in. Additional exploratory locations and/or contingent locations are likely but will depend on successful drilling results of the initial wells.
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Alberta Oilsands Inc. is a technically driven high growth energy company focused on the development and conversion of the company's oil sands resources to reserves and the creation of long term sustainable value by increasing production and cash flow on relevant conventional oil and natural gas assets.
Analogous Information. In this new release, AOS has provided information with respect to certain of its conventional oil and gas opportunities which is "analogous information" as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. This analogous information includes estimates of historical production amounts in the Buick Creek Slave Point pool. This analogous information is derived from publicly available information sources which are predominantly independent in nature. Some of this data may not have been prepared by qualified reserves evaluators or auditors and the preparation of any estimates may not be in strict accordance with Canadian Oil & Gas Evaluation Handbook. Regardless, estimates by engineering and geo-technical practitioners may vary and the differences may be significant. AOS believes that the provision of this analogous information is relevant to AOS' activities, given its acreage position and operations (either ongoing or planned) in the area in question, however, readers are cautioned that there is no certainty that any of the development on AOS' properties will be successful to the extent in which operations on the lands in which the analogous historical production information is derived from were successful, or at all.
Forward-Looking Statements and Information: This press release contains certain forward-looking statements and information ("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", "design", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, this news release contains forward-looking statements and information with respect to: (i) possible SAGD in-situ development (including the timing of such development) on the Company's oilsands properties, including in respect of pilot projects and further development in respect of its Fort-McMurray properties; (ii) the results of such oil sands development; (iii) the results of the Company's winter core drilling program; and (iv) the results of drilling and further development on, and the ability to realize any additional future production from, the Company's farm-in lands and other conventional oil and gas properties described in this news release, including the Company's ability to fund future developments. 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 and conventional oil and gas 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 and gas prices, the possibility of 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, management discussion and analysis and annual information form for the year ended
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
----------------------------- (1) British Columbia Oil Gas Commission, 2009. See "Analogous Information" below.
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For further information: 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, [email protected]; or Chad Dust, Executive Vice President Finance and Business Development, T: (403) 538-3191, F: (403) 263-6702, [email protected]; Company website: www.aboilsands.ca
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