CALGARY, Feb. 20, 2014 /CNW/ - Alston Energy Inc. ("Alston" or the "Company") announces today that, further to its previous press releases and pursuant to the sales process it had initiated as part of the process to which it is subject pursuant to the Companies' Creditors' Arrangement Act (Canada) ("CCAA"), it has entered into an agreement (the "PSA") to sell all of its oil and gas assets in the Alexander area of Alberta (the "Alexander Assets") to a private Alberta company. The closing of the acquisition of the Alexander Assets pursuant to the PSA is subject to various conditions, including the approval of the Court of Queen's Bench of Alberta under the CCAA process. The effective date of the acquisition will be January 1, 2014.
The Alexander Assets consist of various non-operated working interests between 10 and 20 percent in 15 producing wells and 2 undeveloped locations in the Alexander Area of Alberta located in Townships 55 and 56, Range 26, West of the Fourth Meridian, approximately 100 kilometers northwest of Edmonton. The assets include 38 Boe/d of production from proved reserves of 67 MBoes (weighted 60% oil/40% natural gas) and proved plus probable reserves of 122 Mboes (weighted 57% oil/43% natural gas) based on the latest independent reserve evaluation dated effective December 31, 2012 and prepared by McDaniel & Associates Ltd. The Alexander Assets also include 9,807 gross (3,993 net) acres of land.
The common shares of Alston Energy Inc. trade on the TSX Venture Exchange under the trading symbol "ALO". The common shares will continue to trade on the facilities of the TSX Venture Exchange during the CCAA process.
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.
Advisory: This press release contains forward-looking statements. More particularly, this press release contains statements concerning expectations regarding obtaining court approvals for the acquisition described herein.
The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Alston, including expectations and assumptions concerning the approval of the acquisition by the Court of Queen's Bench of Alberta and the ability of Alston to meet all of the other conditions set forth in the PSA.
Although Alston believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Alston can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to close the acquisition based on the inability of either party to meet a condition to closing as set forth in the PSA or the failure to obtain the requisite court approvals.
The forward-looking statements contained in this document are made as of the date hereof and Alston undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
In this press release, the calculation of barrels of oil equivalent ("boe") is at a conversion rate of 6 Mcf of natural gas for one barrel of oil and is based on an energy equivalence conversion method. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 barrel is based on an energy equivalence conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead
SOURCE: Alston Energy Inc.
For further information:
ALSTON ENERGY INC.
Don K. Umbach, President & CEO
Tel.: (403) 265-2770 Ext. 222
Email: [email protected]
Neil G. Burrows, VP Finance & CFO
Tel.: (403) 265-2770 Ext. 228
Email: [email protected]