Athabasca Oil Sands Corp.

May 12, 2009 14:35 ET

Athabasca Oil Sands Corp. Announces Updated Independent Resource Report

CALGARY, ALBERTA--(Marketwire - May 12, 2009) - Athabasca Oil Sands Corp. (AOSC) has received an updated independent resource evaluation report from GLJ Petroleum Consultants (GLJ) for its core areas MacKay River, Dover and Dover West, where the company drilled 71 wells last winter. AOSC is very pleased with the results of the program resulting in an approximate 40% increase in recoverable "best estimate contingent resources" which now stand at 9.7 billion barrels. The core area evaluated by GLJ constitutes approximately 87% of AOSC's total "best estimate contingent resources".

GLJ is still working on the resource update for AOSC's 780,000 acre joint venture area where the company holds operatorship and a 50% working interest. Five wells were drilled last winter. Any recoverable resources from that area will be in addition to the figures above.

All of AOSC's recoverable bitumen will be produced using thermal recovery methods. Thermal recovery methods produce bitumen from wells after applying heat to the reservoir. More than 80% of the bitumen resources in the entire Athabasca region are suitable for thermal recovery, while the remaining 20% of the bitumen resources may be developed using mining extraction methods. Thermal recovery projects typically have low environmental impact, are economically robust even at low oil prices and are seen as "the future" of oil sands development. AOSC has the largest lease holding in the Athabasca area with a net working interest of more than 1.55 million acres. The new resource update positions AOSC as the region's largest holder of "best estimate contingent resources" suitable for thermal recovery.

AOSC's strategic focus will be the development of the MacKay River and Dover areas. Applications for regulatory approval of two pilot projects located in the MacKay River and the Dover areas were filed with the ERCB during 2008. The first commercial project is planned to be a 150,000 bbl/d SAGD development in MacKay River. The first phase will have a capacity of 35,000 bbl/d with production starting in 2014. AOSC expects to file the regulatory application towards the end of 2009.

Reader Advisory

Certain information set forth in this press release contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, most of which are beyond the control of Athabasca Oil Sands Corp., including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, timely and cost effective access to sufficient capital from internal and external sources, regulatory changes and estimates of resources. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this release should not be unduly relied upon. Actual results, performance or achievement could differ materially from those expressed in or implied by these forward-looking statements. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. Athabasca Oil Sands Corp. undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities law.

Contact Information

  • Athabasca Oil Sands Corp.
    Sveinung Svarte
    President and Chief Executive Officer
    (403) 237-8227
    (403) 264-4640 (FAX)
    Athabasca Oil Sands Corp.
    Bill Gallacher
    (403) 237-9949
    (403) 237-0903 (FAX)