Alberta Oilsands Inc. and Connacher Oil and Gas Limited complete strategic pooling of contiguous oil sands acreage in the Hangingstone East/Halfway Creek area of Alberta



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA/

    CALGARY, Feb. 25 /CNW/ - Alberta Oilsands Inc. (TSXV: "AOS") and
Connacher Oil and Gas Limited ("Connacher") announced today that they have
entered into a pooling of 38.5 sections (24,640 acres) of contiguous oil sands
rights situated south of Fort McMurray in the Hangingstone East/Halfway Creek
area of northeastern Alberta. The pooling will result in the joint ownership,
evaluation and potential development of any resources which may be identified
by the evaluation program. There can be no assurance that developable
resources will be identified from evaluation programs.
    The agreement provides for the joint operatorship during the initial two
years of the evaluation program, with Connacher the designated operator of any
subsequent evaluation program(s) and of any identifiable development
program(s) which may occur. The area is amenable to the application of steam
assisted gravity drainage technology ("SAGD") should developable prospects be
identified.
    The first year's seismic and core hole drilling programs are currently
underway and are anticipated to progress throughout the remaining winter
months in 2008, with preliminary results expected later this year.
    In conjunction with the pooling, an equalization payment which recognizes
sunk costs and the disproportionate acreage contributions by the two parties
will be paid to AOS by Connacher.
    The transaction facilitates AOS's goal of rapid development of its
Hangingstone East asset. "Connacher, an oil sands operator and producer in the
area, brings experience and expertise in accelerating both the evaluation and
development phases of a project. AOS also gains access to significant
additional gross contiguous lands with this pooling," said Mr. Michael Lee,
President of AOS.

    Alberta Oilsands Inc. is a Calgary-based technically driven, high growth
junior oil sands company. Its focus is on creating long term, sustainable
value through the rapid delineation of the oil sands resources located on the
Company's mostly 100% working interest lands. AOS common shares are listed on
the TSX Venture exchange under the symbol "AOS".

    Forward-Looking Information: This press release contains certain
"forward-looking information" under applicable securities law including:
planned evaluation of certain pooled lands and the potential development of
resources from such lands. Forward-looking information is frequently
characterized by words such as "plan", expect", "project", "intend",
"believe", "anticipate", estimate", "may", "will", "potential", "proposed" and
other similar words, or statements that certain events or conditions "may" or
"will" occur. These statements are only predictions. Forward-looking
information is based on the opinions and estimates of management at the date
the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those projected in the forward-looking statements.
These factors include the inherent risks involved in the exploration and
development of oil sands properties, difficulties or delays in start-up
operations, the uncertainties involved in interpreting drilling results and
other geological data, fluctuating oil prices, the possibility of
unanticipated costs and expenses, uncertainties relating to the availability
and costs of financing needed in the future and other factors including
unforeseen delays. For a description of the risks and uncertainties facing AOS
and their respective business and affairs, readers should refer to AOS's
annual financial statements and management discussion and analysis for the
year ended December 31, 2006, which are available on www.sedar.com. AOS
undertakes no obligation to update forward-looking information if
circumstances or management's estimates or opinions should change, unless
required by law. The reader is cautioned not to place undue reliance on
forward-looking information.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00020297E




For further information:

For further information: Shabir Premji, C.A., Executive Chairman,
Alberta Oilsands Inc., Phone: (403) 232-3341, Fax: (403) 263-6702,
spremji@aboilsands.ca, www.aboilsands.ca; Chad Dust, Executive V.P. Finance
and Business Dev., Alberta Oilsands Inc., Phone: (403) 538-3191,
cdust@aboilsands.ca

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ALBERTA OILSANDS INC.

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