Alberta Oilsands Receives Notice of Lease Cancellations at Clearwater
October 18. 2013 (Source: FSC) — Alberta Oilsands Inc. (AOS – TSX Venture), (“AOS” or the “Company”) announces that on October 17, 2013, the Province of Alberta (Oil Sands Division) officially advised the Company by letter that the Company’s oil sands leases within the Fort McMurray Urban Development Sub-Region (UDSR) will be cancelled. Specifically, oil sands lease agreements 7407090336 and 7407070268 covering a total area of 1,920 hectres will be cancelled in their entirety; and portions of land representing a total area of 2,421.7 hectres under oil sands lease agreements 7407080532 and 7407070269 will also be cancelled.
The letter from the Province of Alberta also confirmed that the oil sands agreement cancellations are subject to the payment of compensation to be determined in accordance with the Mineral Rights Compensation Regulation (MRCR). According to the MRCR, compensation payable to the Company is calculated as the sum of:
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1. The amount of money paid to the Crown (sections 3 and 4) such as bonus bid, rental amount, application fees;
2. A Development allowance (section 6);
3. A reclamation allowance (section 7); and
4. An interest allowance (section 8).
Within the next several days, the Company will finalize and submit its claim for payment of compensation. During the submission process, AOS will provide shareholders with updates as they become available.
About Alberta Oilsands Inc.
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 new Africa initiative is focused on active and known onshore and offshore basins on the East Africa Rift System and the offshore 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.
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