With this acquisition, Alston is acquiring light oil assets in the emerging Pembina/Cardium resource play. The assets include a 3.5% beneficial interest in 19 producing oil wells, one coal bed methane gas well, four standing or suspended wells, two 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 company estimates that the property has proved plus probable reserves of 17,300 barrels of recoverable oil, yielding an estimated acquisition metric of $9.39 per barrel.
Wayne Babcock, chairman and CEO of Alston Ventures, said: “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.”
