Alberta Oilsands Provides Additional Update on its Compensation Application for its Cancelled Clearwater Leases
March 5, 2014 (Source: FSC Wire) — Alberta Oilsands Inc. (AOS – TSX Venture), (“AOS” or the “Company”)is pleased to provide an update on its application to the Government of Alberta for compensation of its cancelled Clearwater oil sands leases.
Pursuant to the Mineral Rights Compensation Regulation, the Company is entitled to compensation from the Government of Alberta for its cancelled leases in the Fort McMurray Urban Development Sub-Region area. Under the legislation, compensation payable is the sum of lease amounts paid to the Crown, development and reclamation costs incurred and applicable interest.
As previously announced on November 28, 2013, the Company submitted a claim to the Government of Alberta for compensation of approximately $56 million (including interest).
Since January 2014, the Alberta Department of Energy has been reviewing the Company’s compensation application and in normal course, has been conducting an audit of AOS’ submitted compensation claim to verify that the amounts claimed as development allowance from 2006 to 2013 are being claimed in accordance with section 6 of the Mineral Rights Compensation Regulation. AOS has been working with the Alberta Department of Energy during this audit process by providing supporting documents for the development allowance claimed and has responded to all government queries to date.
AOS anticipates that the audit process will be completed shortly and that the Company will be in a position to confirm the compensation amount with the Government of Alberta thereafter.
About Alberta Oilsands Inc.
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Alberta Oilsands Inc. is engaged in the exploration and development of drill-defined domestic assets, and an expanding portfolio of international projects. AOS holds bitumen leases in the Athabasca oil sands region of northeast Alberta. In addition, the Company’s Africa initiative is focused on active and known onshore and offshore basins on the East Africa Rift System and offshore Africa in pursuit of additional Cretaceous and Miocene aged critical mass opportunities. The Company’s head office is located in Calgary, Alberta, Canada and its common shares are traded on the TSX Venture Exchange under the trading symbol AOS.
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.
Certain statements included in this press release constitute forward-looking statements or forward-looking information under applicable securities legislation. Forward-looking statements or information typically contain statements with words such as “anticipate”, “believe”, “expect”, “hope”, “plan”, “intend”, “estimate”, “potential”, “propose”, or similar words suggesting future outcomes or statements regarding an outlook. Specific forward-looking statements in this press release include, without limitation, statements with respect to the timing and amount of compensation to be received from the Province of Alberta for the Clearwater property.
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 Province of Alberta arriving at a different interpretation as to the amount of compensation payable to the Company. Accordingly, readers should not place undue reliance on forward-looking statements contained in this press release. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Additional risks and uncertainties affecting AOS and its business and affairs are described in further detail in the Company’s Annual Information Form for the year ended December 31, 2012. 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 press release is expressly qualified in its entirety by this cautionary statement. The forward looking information included herein is made as of the date of this press release and AOS assumes no obligation to update or revise any forward looking information to reflect new events or circumstances, except as required by law.
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