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Alberta Star Development Corp. (TSX-V:ASX - News)(OTC.BB:ASXSF - News)(Frankfurt:QLD
- News) ("Alberta
Star" or the "Company") announces that all five (5) standing
cased wells located on the Lloydminster (Alberta) area heavy oil assets that
were acquired by the Company in August 2010, are completed and producing,
with production from the first (3) of the wells having stabilized in
aggregate, at approximately 75 bbls/d (25 bbls/d net to the Company) from the Sparky formation.
Continuous production from two (2) of the completed wells is expected to
commence over the next few days, pending completion of clean-out and
subsequent flow testing activities. The Company will provide a further
production update on these five (5) completed producing wells once the
clean-out testing activities have been completed and oil production has been
stabilized. Alberta Star holds a 33 1/3% working interest in these assets.
The Company was successful at the recent
Alberta Crown Land Auction together with its industry partner, acquiring a
100% interest in petroleum and natural gas rights on 120 gross acres of land
located in the Lloydminster area of Alberta. The Company and its industry partner
acquired the new Alberta property on a 50/50 basis, paying an aggregate cash
consideration of $192,000 ($96,000 net purchase price to the Company),
inclusive of administrative fees and acceptable taxes.
ALBERTA STAR DEVELOPMENT CORP.
The Company is a Canadian resource
exploration and development company that identifies, acquires and finances
oil and natural gas assets in Western Canada and advanced stage mineral
exploration projects in North America. The Company has recently made two
strategic heavy oil & gas acquisitions in Lloydminster, Alberta and
Saskatchewan which has expanded its diversification into the oil and natural
gas resource sector with the acquisition of revenue producing resource assets
which compliments its existing, advanced stage mining
interests. The Company is an Alberta based, junior heavy oil producer that
has a growing production base, and is maximizing future production through
its exploration drilling activities, production acquisitions and strategic
asset acquisition both domestically and in the international arena. The
recent, strategic property acquisitions combined with a growing production
portfolio has further strengthened the Company's relationship, with an
experienced working interest partner and heavy oil industry leader. This
strategic partnership will allow for rapid future expansion into the oil and
natural gas resource sector through exploration drilling, existing asset
development and production asset acquisition. The Company's strong balance
sheet is expected to fuel the Company's coming production growth plans in the
oil and gas sector.
The Company maintains a strong balance
sheet and has a seasoned, qualified management team in field exploration,
exploration drilling ready for the development the Company's oil and gas and
natural resource properties. The Company is committed to creating long term
shareholder value through the acquisition, exploration and development of its
petroleum and natural gas resources and through the discovery of base and
precious metals resource projects. The Company continues to review and seek
to acquire additional oil & gas exploration products, acquire additional
oil and gas production and to further develop additional base and precious
metal resource projects.
INVESTOR RELATIONS
Investors are welcomed to contact
Benjamin Curry of Progressive I.R. Consultants Corp. at (604) 689-2881, the
Company's Investor Relations specialists for all corporate updates, and
investor inquiries.
The calculation of
barrels of oil equivalent ("boe") are
based on a conversion rate of six thousand cubic feet ("mcf") of natural gas to one barrel of crude oil. Boe's may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf:1 bbl is base on energy conversion method primarily
applicable at the burner tip and does not represent a value equivalency at
the wellhead.
Reader Advisory
Certain information in this Press
Release is forward-looking within the meaning of certain securities
legislation, and is subject to important risks, uncertainties and
assumptions. This forward-looking information includes, among other things,
information with respect to Alberta Star's beliefs, plans, expectations,
anticipations, estimates and intentions, including the licensing, completion
and success of future drilling and development activities, the performance of
existing wells, the performance of new wells, general economic conditions,
availability of required equipment and services and prevailing commodity
prices. The words "may", "could", "should",
"would", "suspect", "outlook",
"believe", "anticipate", "estimate",
"expect", "intend", "plan", "target"
and similar words and expressions are used to identify forward-looking information.
The forward-looking information in this Press Release describes Alberta Star's
expectations as of the date of this Press Release.
Material factors which could cause
actual results or events to differ materially from such forward-looking
information include, among others, risks arising from general economic
conditions and adverse industry events, risks arising from operations
generally, changes in plans with respect to exploration or development
projects or capital expenditures; the uncertainty of reserve estimates; the
uncertainty of estimates and projections relating to production, costs and
expenses, and health, safety and environmental risks, commodity price and
exchange rate fluctuations; reliance on contractual rights such as licenses
and leases in the conduct of its business, reliance on third parties,
reliance on key personnel, possible failure of the business model or business
plan or the inability to implement the business model or business plan as
planned, competition, environmental matters, and insurance or lack thereof.
Alberta Star cautions that the foregoing
list of material factors is not exhaustive, is subject to change and there
can be no assurance that such assumptions will reflect the actual outcome of
such items or factors. When relying on Alberta Star's forward-looking
information to make decisions, investors and others should carefully consider
the foregoing factors and other uncertainties and potential events. It has
also assumed that the material factors referred to in the previous paragraph
will not cause such forward-looking information to differ materially from
actual results or events. The forward-looking statements contained in this
press release are made as of the date hereof and the Company 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.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as the term is defined in the Policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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