Alberta Oilsands Inc. announces bought deal financing



    /NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR
    DISSEMINATION IN THE U.S.A./

    CALGARY, July 10 /CNW/ - Alberta Oilsands Inc. (the "Company") is pleased
to announce that it has entered into a private placement common share and
flow-through common share financing agreement, on a bought deal basis, with an
underwriting syndicate led by Canaccord Capital Corporation and including
National Bank Financial Inc., BMO Nesbitt Burns Inc., Genuity Capital Markets,
GMP Securities L.P., Raymond James Ltd., (collectively the "Underwriters").
The Company will issue 5,000,000 common shares and 11,843,000 flow-through
common shares at a price of $0.75 per common share and $0.95 per flow-through
common share for total gross proceeds of $15,000,850. In addition, and subject
to regulatory approval, the Underwriters will also be entitled to an option to
purchase additional common shares and flow-through common shares having a
total value of up to $5,000,000, exercisable in whole or in part. If the
Underwriters' option is exercised in full the total gross proceeds of the
offering will be approximately $20,000,000.
    The private placement financing is scheduled to close on July 31, 2008
and is subject to customary conditions including regulatory approval. The
proceeds of the financing will be used to fund the Company's 2008/09 capital
expenditure program. Proceeds from the issuance of the flow-through common
shares will be used to incur Canadian exploration expenses on continued
exploration of the Company's oil and natural gas properties in western Canada,
including its Athabasca oil sands lands, prior to December 31, 2009 and will
be renounced to subscribers of the flow-through common shares effective
December 31, 2008.

    Forward-Looking Statements: This press release contains certain
"forward-looking statements" within the meaning of such statements under
applicable securities law including management's assessment of the Company's
properties, production and prospects. Forward-looking statements are
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 statements are 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, the uncertainties
involved in interpreting drilling results and other geological data, the
possibility that royalties and other government levies could be increased,
fluctuating oil prices, the possibility of project cost overruns or
unanticipated costs and expenses, uncertainties relating to the availability
and costs of financing needed in the future and other factors including
unforeseen delays. As an oil sands focused enterprise, the Company faces
risks, including those associated with exploration, development, approvals and
the ability to access sufficient capital from external sources. Anticipated
exploration and development plans relating to the Company's properties are
subject to change. For a detailed description of the risks and uncertainties
facing the Company and its business and affairs, readers should refer to the
Company's annual financial statements ,management discussion and analysis and
annual information form for the year ended December 31, 2007, all of which are
available at www.sedar.com. The Company undertakes no obligation to update
forward-looking statements 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 statements.

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

    Not for dissemination in the United States of America. This news release
shall not constitute an offer to sell or the solicitation of any offer to buy
securities of the Company in any jurisdiction, including the United States.
The common shares of the Company have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and have not been and will not
be offered or sold in the United States or to any U.S. person except in
certain transactions exempt from the registration requirements of the U.S.
Securities Act and applicable state securities laws.

    %SEDAR: 00020297E




For further information:

For further information: Alberta Oilsands Inc., Suite 2800, 350 - 7th 
Avenue S.W., Calgary, Alberta, T2P 3N9, Shabir Premji, Executive Chairman, T:
(403) 232-3341, F: (403) 263-6702, spremji@aboilsands.ca; or Chad Dust,
Executive Vice President Finance and Business Development, T: (403) 538-3191,
F: (403) 263-6702, cdust@aboilsands.ca.; Company website: www.aboilsands.ca

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ALBERTA OILSANDS INC.

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