FSC / Press Release
Alberta Oilsands Completes Transaction in Democratic Republic of the Congo
Calgary, Alberta CANADA, January 11, 2013 /FSC/ - Alberta Oilsands Inc. (AOS -
TSX Venture), is pleased to announce that further to the press release of
November 19, 2012, it has completed its transaction with a subsidiary of Pan
African Oil Ltd. ("PAO") to jointly pursue a production sharing agreement with
respect to two blocks, the Kalembe Block (Block 5) and the Fatuma Block (Block
6) (together, the "DRC Blocks"), in which the Company may earn a 43.75% interest
in the DRC Blocks.PAO will remain the operator of the DRC Blocks.
The DRC Blocks comprise over one million acres (gross) covering the Kalemie
sub-basin on Lake Tanganyika, in the Democratic Republic of the Congo - and in
the heart of the East African Rift System. Blocks 5 and 6 are adjacent to
acreage held by Total S.A.
As consideration for the closing, the Company has paid to PAO an aggregate of $1
million (the "Cash Consideration") and issued 5 million common shares in the
capital of the Company at an attributed value of $0.10 per common share (the
"Common Shares", together with the Cash Consideration, the "Acquisition Price").
The Cash Consideration will primarily be used to pay for the past and
anticipated upcoming costs and expenses of pursuing the production sharing
agreement, up to the full amount of the Cash Consideration, after which time
costs and expenses will be shared equally by AOS and PAO. A finder's fee equal
to 5% of the Acquisition Price payable half in cash and half in common shares at
an attributed value of $0.10 per common share ("Finder Shares") will be paid to
an arm's length third party. The Common Shares and Finder Shares are subject to
a statutory hold period of four (4) months plus one (1) day.
About Alberta Oilsands Inc.
Alberta Oilsands Inc. is engaged in the exploration and development of
drill-defined domestic assets, and an expanding portfolio of international
projects. AOS holds 106 bitumen leases in the Athabasca oil sands region of
northeast Alberta, primarily its flagship Clearwater and Grand Rapids projects.
In addition, the Company's new Africa initiative is focused on active and known
onshore and offshore basins on the East Africa Rift System and the offshore in
pursuit of additional Cretaceous and Miocene aged critical mass opportunities.
The Company's head office is located in Calgary, Alberta, Canada and Alberta
Oilsands' common shares are traded on the TSX Venture Exchange under the trading
For further information please contact:
Interim CEO & President
+1 416 9518800
+1 416 907 9422
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 release.
Certain statements included in this press release constitute forward-looking
statements or forward-looking information under applicable securities
legislation. Forward-looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect", "plan",
"intend", "estimate", "propose", or similar words suggesting future outcomes or
statements regarding an outlook. Specific forward-looking statements in this
press release include statements with respect to AOS' plans to jointly pursue a
production sharing contract in the DRC Blocks. Such forward-looking statements
or information are based on a number of assumptions which may prove to be
incorrect, including assumptions with respect to the satisfaction and timing of
receipt of required regulatory and stock exchange approvals, the results of
geological and geophysical studies on the DRC Blocks and future negotiations
with the Democratic Republic of the Congo. Although AOS believes that the
expectations reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking statements or
information because AOS can give no assurance that such expectations will prove
to be correct. The forward-looking statements and information are based on AOS'
current expectations, estimates and projections, and are subject to a number of
significant risks and uncertainties that could cause actual results to differ
materially from those anticipated, including general business and economic
conditions, the political, regulatory and economic regime in the Democratic
Republic of Congo and actions of competitors and prospective partners.
Additional risks and uncertainties affecting AOS and its business and affairs
are described in further detail in the Company's Annual Information Form for the
year ended December 31, 2011, which is available at www.sedar.com. The
forward-looking information included in this press release is expressly
qualified in its entirety by this cautionary statement. The forward-looking
information included herein is made as of the date of this press release and AOS
assumes no obligation to update or revise any forward looking information to
reflect new events or circumstances, except as required by law. Readers are
advised not to place undue reliance on forward-looking statements or
To view this news release as a webpage please click on the following link:
Source: Alberta Oilsands Inc. (TSX-V AOS) www.aboilsands.ca
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-0- Jan/12/2013 0:59 GMT
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