CALGARY, ALBERTA — (Marketwire) — 11/13/12 — Alston Energy Inc. (TSX VENTURE: ALO) (“Alston”) is pleased to announce its intention to conduct the following drilling operations and undertake the associated capital expenditures over a 15 month period commencing in the fourth quarter of calendar 2012 and ending in the fourth quarter of fiscal 2013.
In the fourth quarter of calendar 2012, Alston plans to drill one net vertical oil well at Provost, Alberta and participate in two horizontal oil wells (3.5% per well) at Pembina, Alberta for an estimated total capital expenditure of $785,000CDN. Alston estimates that the Q4 2012 drilling program will add 38 barrels of oil per day at initial production rates and 50,500 barrels of proved producing oil reserves.
In fiscal 2013, Alston plans to drill three net vertical oil wells at Provost, Alberta, one net horizontal oil well at Alexander, Alberta and three horizontal oil wells (3.5% per well) at Pembina, Alberta at various times during the period, for an estimated total capital expenditure of $3,065,000CDN. Alston estimates that the fiscal 2013 drilling program will add an estimated initial production rate of 164 barrels of oil per day and 252,000 barrels of proved producing oil reserves.
The planned expenditures are expected to meet Alston–s 2012 and 2013 flow-through share obligations.
Based on Alston–s internal risk assessment, we expect to average 608 BOE per day in the fourth quarter of fiscal 2013 and generate cash flow from operations of $1.2MM for the quarter.
About Alston Energy Inc.: Alston is a junior oil and gas company, incorporated in Alberta and listed on the TSXV. Its primary exploration focus is in north-Central and east-Central Alberta. More information about Alston can be found on SEDAR under the company–s profile at .
Conversion: BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Initial production rates: Initial production rates disclosed herein may not necessarily be indicative of long-term performance or ultimate recovery.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. More particularly, this press release contains statements concerning (i) Alston–s projected capital expenditures for the balance of 2012 and fiscal 2013 and the tax classification thereof, (ii) drilling plans, (iii) additions to reserves and production, (iv) expected 2013 exit rate of production, (v) the resulting cash flow from added production, and (v) average rates of production for the fourth quarter of 2012 & 2013.
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 success of future drilling and development activities, the performance of existing wells, the performance of new wells, the successful application of technology and prevailing commodity prices.
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, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or 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 and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
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.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release. 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.
Contacts:
Alston Energy Inc.
Don K. Umbach
President & CEO
(403) 265-2770 Ext. 222
Alston Energy Inc.
Bruce Eckert
VP Operations & COO
(403) 265-2770 Ext. 230
Alston Energy Inc.
Troy Winsor
VP Business Development
1-800-663-8072