Does everyone agrees that it is the correct direct To reduce cost, add asset holdings?
Ref. PR:
Alberta Oilsands Inc. Completes Sale of its Conventional Oil and Natural Gas Assets
Alberta Oilsands Inc. Completes Sale of its Conventional Oil and Natural Gas Assets
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A
Calgary, Alberta CANADA, March 06, 2013 /FSC/ - Alberta Oilsands Inc. (AOS - TSX Venture), ("Alberta Oilsands" or the "Company") further to its announcement on August 14, 2012, AOS has completed the sale of its conventional oil and natural gas assets (the "Conventional Assets"). In exchange for the sale of the Conventional Assets, AOS received an aggregate of $100,000 and acquired three oil sands leases in the Lesimer area of Alberta, located approximately 70 miles south of Fort McMurray (the "Leismer Oil Sands Leases").
The Leismer Oil Sands Leases consist of a 100% interest in two sections of land (section 05-078-08W4; section 11-078-09W4) and a working interest of 80% in section 19-077-09W, all of which lie within the Athabasca Oil Sands Area. Approval has been received from the Energy Resources Conservation Board for the transfer of the relevant well, facility and pipeline licences in connection with the sale of the Conventional Assets.
AOS' newly acquired Leismer Oil Sands Leases are located within a few miles of Grizzly Oil Sands' proposed May River SAGD project; within 10 miles of Statoil's producing Leismer SAGD project, which is a 18,800 boe/d commercial demonstration project producing since January 2011 and which has a proposed commercial production capacity of 40,000 boe/d; and within 10 miles of Statoil's proposed Corner SAGD project, which has a proposed commercial production capacity of 40,000 boe/d.
The disposition of the Conventional Assets is a significant step taken by the Company to reduce G&A costs. The sale of the Conventional Assets eliminates annual operating and capital costs of approximately $720,000 for 2013, which was budgeted for the Conventional Assets. Since July of 2012, AOS has also reduced management fees by approximately $476,000 on an annual basis and other G&A costs by $345,000 per year.
The disposition of the Conventional Assets was completed in furtherance of AOS' previously announced plans of reducing operating costs, advancing its Clearwater project and pursuing its ongoing international strategy.