Post by
petunia1 on Jul 21, 2010 9:59am
Alston closes JV to explore Sask. assets
Alston closes JV agreement to explore Sask. assets
Alston Ventures Inc (C:ALO)
Shares Issued 14,879,604
Last Close 7/20/2010
.205
Wednesday July 21 2010 - News Release
Mr. Don Umbach reports
ALSTON VENTURES INC. ANNOUNCES CLOSING OF SASKATCHEWAN JOINT VENTURE
Alston Ventures Inc. has signed the formal agreement closing the joint venture agreement with two private Alberta companies to explore for oil and gas assets in the Chauvin area of east-central Alberta and west-central Saskatchewan.
SUMMARY OF THE AGREEMENT:
With this Joint Venture, Alston will be exploring for high quality, long life, medium to heavy oil assets in the emerging Chauvin area resource play. Alston will be incorporated into the agreement as to an individual 50% interest in 1680 gross acres of land, seismic surveys and geological prospects developed by the joint venture. The Companies have agreed on an area of mutual interest (AMI) covering 25 townships of land (576,000 acres) straddling the Alberta/Saskatchewan border near the town of Chauvin, Alberta.
The Joint Venture will target new oil pools in known Cretaceous and Devonian aged producing formations. Alston will reimburse the Companies $182,456.12 for 50% of past land, seismic and geological costs incurred to date within the AMI. Alston will also pay an additional $200,000.00 of the first $1,200,000.00 incurred by the joint venture for drilling and seismic costs after the effective date of the agreement. Thereafter the cost will be shared in accordance with the working interests of the partners.
The joint venture parties have proposed a 2010 capital budget of $2,120,000.00 for drilling, seismic and additional land acquisition. The first of two wells planned for the third Quarter is expected to begin drilling in August.
Wayne Babcock, Chairman and CEO states, "We are very pleased with this new joint venture which will give Alston a strong presence in this prolific oil producing area. Alstons staff bring with them a strong skill set and considerable experience in the area of conventional and horizontal drilling and modern completion techniques."
This transaction is subject to TSX Venture approval.