2013-01-07 15:03:37 -
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A.
Calgary, Alberta CANADA, January 07, 2013 /FSC/ - Alberta Oilsands Inc. (AOS - TSX Venture)("Alberta Oilsands" or the "Company")is pleased to announce that it has submitted to the Energy Resources Conservation Board (ERCB) its response to the remaining question in the third Supplemental Information Request (SIR) and an updated geo-mechanical reservoir model simulation relating to its Clearwater West SLP-SAGD project ("Clearwater").
Binh Vu, interim President of Alberta Oilsands stated, "The submission of the remaining responses and an updated geo-mechanical reservoir model simulation to the ERCB provides strong support for approval of AOS' Clearwater application. This is a significant step on the path to production at
the Company's Clearwater project."
The Company initially filed an application to the ERCB for a Solvent Co-Injection Low Pressure Steam Assisted Gravity Drainage (SLP-SAGD) pilot project at Clearwater with a design production capacity of 4,350 bbl/d of bitumen through six horizontal SLP-SAGD well pairs. The Company has now responded to all outstanding SIRs from the ERCB and will continue to work with the ERCB during the coming months to advance the Clearwater application to the approval stage. Subject to the ERCB's approval of the Clearwater application and successful completion of the pilot program, the Company plans to proceed to the commercial production phase and increase the production capacity at Clearwater.
The Clearwater project area is now delineated by a total of 60 core holes over approximately 6 sections. The section that the Clearwater application encompasses has a core density of 14 core holes per section with 3D seismic coverage. The Company engaged GLJ Petroleum Consultants to prepare a NI 51-101 compliant resource report on the entire Clearwater project area based on delineation that included the results of the winter drilling program with an effective date of December 31, 2011. Gross lease contingent resources of 373 million barrels (MMbbl) were assigned on a best estimate basis. The contingencies which currently prevent the classification of the contingent resources as reserves are the pending successful piloting of the SLP-SAGD technology, further delineation drilling, facility design, regulatory approvals and firm development plans.
Alberta Oilsands Inc. is engaged in the exploration and development of bitumen in the Athabasca oil sands region of northeast Alberta. Its head office is located in Calgary, Alberta, Canada and Alberta Oilsands' common shares are traded on the TSX Venture Exchange under the trading symbol AOS.
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Interim CEO & President
GMFB Communications Inc.
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.
This news release contains forward looking information including expectations for proceeding with the commercial production phase at Clearwater, increasing production capacity at Clearwater and estimates of resources at Clearwater.
Forward looking information is based on management's expectations regarding the successful completion of the pilot program at Clearwater, future growth, results of operations (including production, operating costs, average realized bitumen prices), future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for and results of drilling activity, environmental matters, business prospects and opportunities, future royalty rates, commodity prices and foreign exchange rates and future economic conditions. Forward looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration, production and start-up activities; delays or changes in plans with respect to exploration or development projects or capital expenditures; unanticipated operational upsets; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations and risks and uncertainties associated with securing and maintaining the necessary regulatory approvals and financing to proceed with the continued expansion at Clearwater. Additional risks and uncertainties relating to AOS and its business and affairs are described in further detail in AOS' Annual Information Form for the year ended December 31, 2011 which is available at www.sedar.com. Although AOS believes that the expectations in such forward looking information are reasonable, there can be no assurance that such expectations shall prove to be correct. The forward-looking information included in this news release is expressly qualified in its entirety by this cautionary statement. AOS assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.
This news release includes information pertaining to the resources of the Corporation as at December 31, 2011 as evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") in their report for the year ended December 31, 2011. Statements relating to resources are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described exist in the quantities predicted or estimated, and can be profitably produced in the future. Certain information and assumptions relating to the resources reported herein are set forth in AOS' annual information form for the year ended December 31, 2011 which is available at www.sedar.com. The resource estimates of AOS' properties described herein are estimates only. The actual resources on AOS' properties may be greater or less than those calculated. Readers are referred to AOS' annual information form for the year ended December 31, 2011 for additional information relating to the risks and levels of uncertainties associated with the recovery of the contingent resources.
References to "contingent resources" in this news release do not constitute, and should be distinguished from, references to "reserves". Reserves are estimated remaining quantities of crude oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Contingent Resources are those quantities of petroleum estimated, as of 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. There is no certainty that it will be commercially viable to produce any portion of the resources. "Best Estimate" is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability that the quantity actually recovered will equal or exceed the best estimate.
In addition, design capacity is not necessarily indicative of the stabilized production levels that may ultimately be achieved at Clearwater.
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Source: Alberta Oilsands Inc. (TSX-V AOS) www.aboilsands.ca
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