Press Release
Alberta Oilsands Inc. Advances its Clearwater West SLP-SAGD Project
Application
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.
About
AOS
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.
For further information please contact:
Binh Vu
Interim CEO & President
(416) 951-8800
bvu@aboilsands.ca
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.
To view this press release as a web page, click onto the link
below:
http://www.usetdas.com/pr/albertaoilsands07012013.htm
Source: Alberta Oilsands Inc. (TSX-V
AOS)
www.aboilsands.ca
