total of 107.5 sections 68,800 acres, 100%Alberta Oilsands Inc. operational and financial update
CALGARY, Sept. 5 /CNW/ - Alberta Oilsands Inc. ("AOS" or the "Company") (TSXV:AOS) is pleased to announce that it has acquired 22.5 sections (14,400 acres) of contiguous oil sands leases, at 100% working interest, in the heart of the Athabasca oil sands fairway near Fort McMurray.
To date there have been 5 penetrations drilled on the acquired oil sands leases surrounded by approximately 100 wells drilled on adjacent sections that confirms the presence of the reservoir oil sands with bitumen pay thickness ranging from 25 to 60 meters. The Alberta Energy and Utilities Board Crude Bitumen Reserves Atlas estimates that the leases contain undiscovered resource in excess of 2.0 billion barrels of original bitumen in place ("OBIP").
Drilling is planned for the 2007/Q1 2008 season to further delineate the potential for an in-situ project. The prospective zone on the oil sand leases is the McMurray Formation which comprises high quality fluvial and estuarine channel sands. The Company has engaged Ryder Scott Petroleum Consultants to complete a National Instrument 51-101 compliant resource assessment on the acquired leases.
The acquisition of the additional oil sands leases increases the Company's land base to a total of 107.5 sections (68,800 acres). The acquired leases in conjunction with AOS' Hangingstone assets, will form the basis of the Company's plan for a series of successive in-situ bitumen extraction projects, likely applying SAGD (Steam Assisted Gravity Drainage) technology.
In addition, AOS has acquired and interpreted 60km of trade 2D seismic on its 23 section Hangingstone Parcel. The data reveals four main anomalies indicating potential bitumen pay similar to the Hangingstone Meadow Creek reservoir to the south.
Mr. Shabir Premji, Executive Chairman of the Company, stated "AOS is very pleased to have added this large scale oil sands property to its portfolio. We intend to aggressively pursue moving this resource to the reserves category."
As at September 5, 2007 AOS had positive working capital of $14,500,000.
Alberta Oilsands Inc. is a technically driven high growth junior oil sands company focused on creating long term sustainable value through the rapid delineation of the oil sands resources located on the Company's 100% working interest leases.