Alston Energy Inc. Announces Operations Update and 2012 Year-end Reserves

CALGARY, March 20, 2013 /CNW/ - Alston Energy Inc. (TSX-V: ALO) ("Alston" or the "Company") is participating in drilling and completion operations at 03/07-07-56-26W4 in the Alexander area (Alberta) targeting oil in the Detrital C oil pool.  The well has been drilled and cased as a potential oil well and is currently waiting on completion operations.  If completion operations are successful, the Operator plans to equip and tie-in the well for production prior to spring break. The Company owns a 15% interest in the well.

The Company has changed its financial year-end from April 30 to December 31 as a result of the merger with CanRock Energy Corp. as announced in a press release dated July 17, 2012.  In response to this change, the Company has asked McDaniel & Associates Consultants Ltd. of Calgary, Alberta to conduct an independent evaluation of its corporate reserves effective as of December 31, 2012 (the "2012 Reserves Report").  The following tables' set forth a Summary of Reserves and Before Tax Net Present Values as presented in the 2012 Reserves Report:

Summary of Reserves

  RESERVES
Crude Oil NGL'S Natural Gas Total
Reserves Category Gross(1)
(Mbbls)
Gross(1)
(Mbbls)
Gross(1)
(MMcf)
Gross(1)
(Mboe)
Proved

     Developed Producing
     Developed Non-Producing
     Undeveloped

Total Proved

     Probable

Total Proved Plus Probable
      

508.5
      15.9
      138.1

      662.5

      345.6

      1,008.1
      

21.0
      0.0
      2.5

      23.5

      8.9

      32.4
      

1,797.7
      16.7
      100.6

      1,915.0

      825.9

      2,740.9
      

829.1
      18.7
      157.4

      1,005.2

      492.2

      1,497.3

Notes:

  1. "Gross Reserves" are the Company's working interest share of remaining reserves before deduction of royalties and excluding royalty interests.
  2. Numbers may not add due to rounding.

Summary of Before Tax Net Present Value

Reserve Category NET PRESENT VALUE (NPV) OF FUTURE NET REVENUE (FNR)
Before Income Taxes Discounted at (%/Year)
0%
(M$)
5%
(M$)
10%
(M$)
15%
(M$)
Proved
     Developed Producing
     Developed Non-Producing
     Undeveloped

Total Proved

     Probable

Total Proved Plus Probable
      
12,729.2
      131.9
      3,835.6

      16,696.8

      12,254.1

      28,950.8
      
11,348.1
      74.2
      2,798.4

      14,220.7

      8,736.4

      22,957.1
      
10,211.1
      33.9
      2,077.6

      12,322.5

      6,461.4

      18,783.9
      
9,273.9
      3.2
      1,561.3

      10,838.3

      4,926.9

      15,765.3

Notes: 

  1. NPV of FNR is based on gross working interest volumes, less royalties.
  2. Numbers may not add due to rounding.
  3. Estimated values disclosed above may not represent fair market value.

The Company intends to follow up this news release by filing a complete National Instrument 51-101 F1 Reserves Report on SEDAR together with its year-end financial information on or before April 30, 2013.

Alston Energy Inc. is a publicly traded, junior oil & gas producing Company with high quality assets in Central Alberta. Our focus is on creating a portfolio of repeatable drilling opportunities targeting shallow to medium depth oil bearing formations in Alberta and Saskatchewan. Alston's management team has a proven track record of executing strategic acquisitions and utilizing new technologies to exploit conventional and unconventional resources.

Alston Energy Inc. trades on the TSX Venture Exchange under the trading symbol ALO. For additional information about Alston please visit our website www.alstonenergy.ca or under the company profile on SEDAR www.sedar.com.

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 press release.

Conversion: BOEs 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.  

SOURCE: Alston Energy Inc.

For further information:

Don K. Umbach, President & CEO
Tel.: (403) 265-2770 Ext. 222
Email: don.umbach@alstonenergy.ca 

Bruce Eckert, VP Operations & COO
Tel.: (403) 265-2770 Ext. 230
Email: beckert@alstonenergy.ca

Troy Winsor, VP Business Development
Tel.: 1-800-663-8072
Email: troyw1@telus.net

Organization Profile

Alston Energy Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890