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.
For additional information about Alston please
visit our website www.alstonenergy.ca or under the company profile
on SEDAR www.sedar.com.
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.