Alston Ventures Inc. Acquires Pembina/Cardium Assets
January 28, 2010 at 12:14 PM EST
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2010) - ALSTON VENTURES INC. (TSX VENTURE:ALO) (the "Company") is pleased to announce that it has entered into a Purchase and Sale Agreement to acquire certain oil and gas assets in the Pembina area of Alberta for total cash consideration of $162,500.00 (the "Acquisition").
SUMMARY OF THE ACQUISITION
With this Acquisition, Alston is acquiring high quality, long life, light oil assets in the emerging Pembina/Cardium resource play. The assets include a 3.5% beneficial interest in 19 producing oil wells, 1 coal bed methane gas well, 4 standing or suspended wells, 2 oil batteries, related production facilities and pipelines and 5,690 gross acres of land in the heart of the Pembina/Cardium Pool. To date, the assets have produced in excess of 2.3 million gross barrels of oil from two Cardium zones and is currently producing approximately 105 barrels of oil per month, net to the Company's interests. As of December 1, 2009, (the "Effective Date") the Company estimates the property has proved plus probable reserves of 17,300 barrels of recoverable oil, net to the Company's interests, yielding an estimated acquisition metric of $9.39 per barrel. Closing is expected to take place on Friday, January 29, 2010.
According to a recent article published by Canadian Discovery Digest of Calgary Alberta, "the Cardium Pool in the Pembina Field is the largest conventional oil pool in Canada with estimated original oil-in-place of 7.8 billion barrels and an average recovery to date of just 17%." Many industry observers believe that the Pembina Cardium Pool shares many similarities to Saskatchewan's prolific Bakken play and could have comparable upside through horizontal drilling/multi-stage fracturing techniques.
Wayne Babcock, Chairman and CEO, states, "We are very pleased with this acquisition which now gives Alston a toehold in an area with strong upside potential. Modern drilling and completion techniques are rejuvenating the Pembina field and Alston will play a part in this new development."
Cautionary Note Regarding Forward-Looking Information: This press release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect of the completion of the Acquisition on the Company; reserve estimates; estimates regarding future production; the receipt of regulatory approvals; expected management rationalization and benefits therefrom; and the future financial and operating performance of Alston and its projects. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social risks and uncertainties; risks relating to oil and gas exploration and exploitation activities; oil and gas prices; acquisition risks; risks relating to greater resources, time and attention will be spent on the Acquisition than anticipated; and delays in obtaining regulatory approvals. Although Alston has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Alston does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Alston Ventures Inc.
Don Umbach, President + COONeither 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.