Alberta Oilsands Inc. announces significant resource increase based on independent resource assessments



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

    CALGARY, Oct. 30 /CNW/ - Alberta Oilsands Inc. (the "Company" or "AOS")
announces that Ryder Scott Company Canada, Petroleum Consultants ("Ryder
Scott"), an independent petroleum consulting firm, has completed its National
Instrument 51-101 ("51-101") compliant assessment of the bitumen resources for
the Fort McMurray property and assigned 2.8 billion barrels of original
bitumen in place (OBIP) for the McMurray formation. The Ryder Scott report
classified the resource into undiscovered, discovered and contingent
categories.

    Fort McMurray

    The Fort McMurray asset comprises approximately 28 sections (17,918 acres
or 7,167 hectares) of 100% working interest oil sands leases. The land is
situated amid the main oil sands fairway at Township 88 Ranges 7 to 9 West of
the 4 Meridian (Twp 88 R07W4M to R09W4M) in the Athabasca region of northeast
Alberta, Canada.
    Resource volumes assigned are 2.42 billion barrels discovered and 401
million barrels undiscovered. Ryder Scott has assigned contingent
(recoverable) resources of 201 million barrels for a portion of the lands,
using a 50% recovery factor and assuming a typical steam assisted gravity
drainage (SAGD) process for extraction of the bitumen from the discovered
resources.
    The Fort McMurray resource assessment utilized openhole logs and core
data from penetrations on the land parcel as well as penetration data
immediately offsetting the lands. There are a total of six (6) well
penetrations on the lands. Data from approximately thirty (30) well
penetrations on and offsetting the lands were used to estimate average
reservoir parameters used in the OBIP calculation. A McMurray formation
bitumen net pay contour map was created over the parcel area using net bitumen
pay estimates from approximately fifty (50) wells. Only net bitumen pay
contours greater than 10 meters were included in the resource volume
calculation.
    The 201 million barrels contingent (recoverable) resources assigned in
the report reflect areas of the Fort McMurray lands where there are high
probability of bitumen pay and ready surface accessibility. AOS is preparing
an oil sand exploration (OSE) application for a winter work program in this
area. In addition, the Company is pursuing consultation with stakeholders over
the remaining lands and will report further significant developments as they
arise. The Company expects its 2007/2008 winter coring program to result in
the reclassification of current discovered resources into additional
contingent resources and a portion of the current contingent resources to
reserves.
    The previously announced Ryder Scott 51-101 compliant resource assessment
of the Hangingstone East property (news release dated May 17, 2007) yielded an
estimated undiscovered resource of 1.15 billion barrels. AOS owns 23 sections
of 100% working interest lease and permit lands on the Hangingstone East
property.
    Ryder Scott has also completed a resource assessment on a third prospect
area, AOS's Hangingstone West (Algar Lake) property. The 51-101 compliant
report assigned 807 million barrels of undiscovered unrecoverable resources
for the property. The Ryder Scott report includes bitumen potential from the
McMurray and Wabiskaw formations and included all pay potential without pay
thickness cut-offs. The Ryder Scott findings are consistent with the AEUB
Alberta Crude Bitumen Reserve Atlas (May 1996) indication of approximately 800
million barrels OBIP in the area lands. The assessment was done at an early
stage of resource delineation.
    In summary, the three Ryder Scott resource assessments in the Ft.
McMurray, Hangingstone East and Hangingstone West (Algar Lake) properties
assign the Company a total of approximately 4.8 billion barrels of discovered
and undiscovered resources (see Table 1).

    
         Table 1 - Summary of AOS's Total Bitumen Resource Potential
    -------------------------------------------------------------------------
    Property Name                 Resources         (millions of barrels)
                         ----------------------------------------------------
                           Undiscovered         Discovered             Total
    -------------------------------------------------------------------------
    Fort McMurray                   401           (i)2,421             2,822
    -------------------------------------------------------------------------
    Hangingstone East             1,150                  0             1,150
    -------------------------------------------------------------------------
    Hangingstone West               807                  0               807
    -------------------------------------------------------------------------
    Total Resources               2,358              2,421             4,779
    -------------------------------------------------------------------------
    (i) 201 million barrels of contingent (recoverable) resources are
        assigned in the discovered resource category
    

    Mr. Shabir Premji, Executive Chairman of the Company, stated "The Fort
McMurray asset is on the main Athabasca oil sands fairway. We will prioritize
the delineation of this asset and focus on converting the bitumen resources to
reserves as quickly as possible."
    The Company also announces that it has entered into an arrangement to
obtain a $5.0 million credit facility with a Canadian financial institution.
Subject to regulatory approval, 116,279 common shares of the company are
expected to be issued in connection with securing the credit facility.

    Alberta Oilsands Inc. is a technically driven, high growth junior oil
sands company focused on creating long term sustainable value through the
rapid delineation of the oil sands resources located on the company's 100%
working interest lands.

    In accordance with the Canadian Standards set out in the Canadian Oil and
Gas Evaluation Handbook (COGEH) and National Instrument 51-101 (NI 51-101) and
per the Canadian Securities Administrators (CSA) Staff Notice 51-321,
"Undiscovered Resources" are those quantities of oil and gas estimated on a
given date to be contained in accumulations yet to be discovered. There is no
certainty that any portion of the undiscovered resources will be discovered
and that, if discovered, it may not be economically viable or technically
feasible to produce. "Discovered Resources" are those quantities of oil and
gas estimated on a given date to be remaining in, plus those quantities
already produced from, known accumulations. Discovered resources are divided
into economic and uneconomic categories, with the estimated future recoverable
portion classified as reserves and contingent resources, respectively. There
is no certainty that any portion of the discovered resources will be
economically viable or technically feasible to produce. "Contingent Resources"
are those quantities of oil and gas estimated on a given date to potentially
recoverable from known accumulations, but are not currently economic.

    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, 2006, 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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