Alberta Oilsands Inc. announces independently interpreted core well results



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

    CALGARY, June 17 /CNW/ - Alberta Oilsands Inc. (the "Company" or "AOS")
announces Ryder Scott Company Canada, Petroleum Consultant ("Ryder Scott"), an
independent petroleum consulting firm, has interpreted core data from existing
and recent wells that were drilled in the first quarter 2008 at its 100%
working interest Fort McMurray Clearwater leases. Ryder Scott has advised that
the core results indicate the presence of stacked fluvial/estuarine channel
sequences with thickness of up to 49 meters of net bitumen pay in a well
developed major incised-valley characterized as a fluvial, eroded, elongated
topographic low. The Clearwater leases are situated on the main commercial oil
sands fairway in Township 88 Ranges 7 and 8 West of the 4th Meridian.

    FORT McMURRAY - CLEARWATER WEST PROJECT AREA

    Core analysis and pay thickness interpretations were completed on
Section 21 and 22 Twp 88 R8W4. Four core holes were drilled on Section 21 and
three core holes were drilled on Section 22. According to Ryder Scott,
estimated total McMurray formation gross sand thickness averaged 45 meters (m)
with a maximum of 55.2 m in the 8-21-088-08W4 and a minimum of 28.5 m. The
interpreted net primary bitumen pay thicknesses on the recently drilled wells
ranged between 45.5 m and 25.5 m. Core porosity averaged 35% with a minimum of
34.2% and a maximum of 35.9%. The core bitumen saturation averaged 80.7%,
ranging from a minimum of 75.7% to a maximum of 85.5%. The cut-offs used in
the interpreted bitumen pay were at 27% for porosity and at 50% for bitumen
saturation. The porosity and bitumen saturations are calculated using results
from Dean-Stark analysis. The depths of the primary bitumen pay zone range
from 70 m to 167 m from surface.
    Density and viscosity analyses were performed on samples from four wells
in this area. The bitumen has an average density of 8 API at 15 degrees
Celsius (degrees C). Viscosity measurements were taken at 35 degrees C,
50 degrees C and 75 degrees C. Extrapolations were made to a maximum
temperature of 250 degrees C in 50 degree increments. At 35 degrees C, the
viscosity varied between a low of around 16,000 to over 400,000 centiPoise
(cP). At 200 degrees C, the average viscosity was around 0.4 cP.

    FORT McMURRAY - CLEARWATER EAST PROJECT AREA

    Core analysis and pay thickness interpretation was completed on
Sections 18 and 19 Twp 88 R7W4. Five core holes were drilled on Section 18 and
two core holes were drilled on Section 19. According to Ryder Scott, estimated
total McMurray formation gross sand thickness averaged 29 m with maximum of
34 m and a minimum of 20 m. The interpreted net bitumen pay thicknesses range
from the primary zone on the wells drilled was 33.8 m to 3.2 m. Core porosity
averaged 36.0% and bitumen saturation averaged 81.8%. The cut-offs used in the
interpreted bitumen pay were at 27% for porosity and at 50% for bitumen
saturation. The porosity and bitumen saturations are calculated using the Dean
Stark analysis procedure. The depths of the primary bitumen pay zone range
from 80 m to 130 m from surface.
    Density and viscosity analyses were performed on samples from three wells
in this area. The bitumen has an average density of 8 API. Viscosity
measurements were taken at 35 degrees C, 50 degrees C and 75 degrees C and
extrapolations were made to a maximum temperature of 250 degrees C in
50 degree increments. At 35 degrees C, the viscosity varied between a low of
around 95,000 to over 286,000 cP. At 200 degrees C, the average viscosity was
around 0.4 cP.
    Ryder Scott has also quantified secondary net bitumen pay zones in
addition to the primary net pay zones discussed above. The secondary bitumen
pay zone is in direct contact with the main primary bitumen pay zone and show
some neutron-density "cross-over" on open-hole logs. Neutron-density
"crossover" zones are considered secondary net bitumen pay if it had less than
8.5 weight percent bitumen (approximately 50 percent bitumen volume fraction
saturation). The secondary net bitumen pay thicknesses vary between 3.5 m to
21 m and appear in most of these wells. This additional pay contains
significant amounts of bitumen resources, a portion of which may be
recoverable through the recovery of the primary bitumen pay.
    Ryder Scott's independent resource report is expected within the next few
weeks.

    Alberta Oilsands Inc. is a technically driven, high growth energy company
focused 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.

    Important Information Regarding the Disclosure of Resources

    There is no certainty that it will be commercially viable for the Company
to produce any portion of the bitumen resources detailed above. The high level
of uncertainty associated with the Company's possible recovery of any of these
resources is the result of various risks and uncertainties including: current
uncertainties around the specific scope and timing of the development of the
Company's Fort-McMurray properties; the ability of the Company to finance any
potential oil sands projects at its Fort-McMurray properties; proposed
reliance on technologies that have not yet been demonstrated to be
commercially applicable in oil sands applications; lack of regulatory
approvals; the uncertainty regarding marketing plans for production from the
subject areas; and improved estimation of project costs. There are a number of
inherent risks and contingencies associated with such development, including
commodity price fluctuations, project costs and those other risks and
contingencies discussed in more detail in the section entitled "Business Risks
and Uncertainties" in the Company's management discussion and analysis for the
year ended December 31, 2007.
    "Resources" are quantities of petroleum that are estimated to exist
originally in naturally occurring accumulations, including the quantity of
petroleum that is estimated, as of a given date, to be contained in known
accumulations, prior to production, plus those estimated quantities in
accumulations yet to be discovered.
    Resources do not constitute, and should not be confused with, reserves.
No bitumen reserves have been recovered within any of the Company's project
areas and there is no assurance that any commercial oil sands projects will be
developed.

    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 and management discussion and analysis
for the year ended December 31, 2007, both 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. Barrels of oil equivalent ("boe") may
be misleading, particularly if used in isolation. A boe conversion ratio of 6
mcf:1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.

    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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