Alberta Oilsands Submits Application to the Government of Alberta for Compensation of $56 Million for its Cancelled Clearwater Leases
November 28, 2013 (Source: FSC Wire) — Alberta Oilsands Inc. (AOS – TSX Venture), (“AOS” or the “Company”)is pleased to report that it has submitted its application to the Government of Alberta for compensation stipulated under the Mineral Rights Compensation Regulation (the “Compensation Regulation”). The claim submission is in the amount of $56 million.
The claim submission is a result of the Province of Alberta (Oil Sands Division) (the “Government of Alberta”) advising the Company that certain of its Clearwater oil sands leases within the Fort McMurray Urban Development Sub-Region (UDSR) will be cancelled.
Pursuant to the provisions of the Compensation Regulation, AOS is eligible for compensation relating to the following costs incurred by the Company in connection with the development of its cancelled Clearwater Project:
1. The amount of money paid to the Crown which includes bonus bids, rental amounts and application fees of approximately $5.928 million.
2. A development allowance of approximately $41.931 million comprised of costs for drilling, 2D & 3D seismic, engineering, ERCB application, facility design, etc.
3. The Company is also eligible for a reclamation allowance in respect of abandonment and reclamation costs associated with wells located in the cancelled lease areas. The reclamation costs will be determined at a later date.
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4. An interest allowance (Alberta Treasury Board prime rate plus 1%). AOS has calculated the interest allowance on the claim amount to be approximately $8.382 million.
Binh Vu stated, “Alberta Oilsands anticipates that the government will fulfill its obligations under the Mineral Rights Compensation Regulation in a judicious and expeditious manner.”
The Company also announced that it has terminated the Algar Lake farm-out agreement with Crescendo Resources. AOS will review and pursue other opportunities to develop and/or monetize Algar Lake.
In Africa, the company continues to evaluate and optimize targets within its prospective property packages.
AOS currently has 211,482,057 issued and outstanding common shares.
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 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.
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Interim CEO & President
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”, “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 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.
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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