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Press release from Filing Services Canada

* Alberta Oilsands Inc. Rebuts Dissidents' Misleading Statements and Diversionary Tactics

Monday, June 11, 2012

* Alberta Oilsands Inc. Rebuts Dissidents' Misleading Statements and Diversionary Tactics14:12 EDT Monday, June 11, 2012* AOS Shareholders Urged to Vote Their BLUE Proxy in Favour of Management Nominees Committed to Integrity, Stability and ProgressFSC / Press Release* Alberta Oilsands Inc. Rebuts Dissidents' Misleading Statements and Diversionary Tactics * AOS Shareholders Urged to Vote Their BLUE Proxy in Favour of Management Nominees Committed to Integrity, Stability and ProgressNOT FOR DISSEMINATION IN THE U.S.A.Calgary, Alberta CANADA, June 11, 2012 /FSC/ - Alberta Oilsands Inc. (AOS - TSX Venture), ("AOS" or the "Company") today rebutted misleading statements by a dissident group, and urged AOS shareholders not to be distracted by the group's diversionary tactics. "The dissidents claim their objective is to 'build shareholder value', but they have not produced one shred of evidence that they could do so more quickly or effectively than your current board of directors and management team," Jack Crawford, AOS' chairman, said.AOS' current board and management team have created significant shareholder value over the last year, namely:1. The sale of the Hangingstone property for net cash proceeds of approximately $24.7 million. This sale has allowed the company to press ahead with its application for the first phase of the Clearwater project without diluting the current shareholders or incurring debt.2. The establishment of significant contingent resources at our Grand Rapids lease as disclosed earlier today. Planning for the field work started about this time last year. These additional contingent resources represent a 32% increase in our overall contingent resource base.3. Working closely and diligently with the authorities to move the Clearwater project towards approval and to lay the groundwork for its construction and completion. By contrast, the dissidents demonstrate a fundamental and shocking ignorance of the long-term nature of oil sands development and the regulatory process. The dissidents appear unaware of the fact that timelines are determined by lengthy regulatory processes, and not by management. The dissidents ask shareholders to believe that a well-respected quasi-judicial body such as the Energy Resources Conservation Board ("ERCB") could be induced to bypass its due process by management "engaging with the ERCB and other regulators, bringing a dynamic and interactive element ... to expedite the approval process". The dissidents fail to understand that a public regulatory hearing moves along a pre-defined timeline with outsiders having no legal ability to "expedite" it. Furthermore, the dissidents' suggestion that AOS examine alternate sites for Phase I would take the lengthy regulatory review process back to the beginning, adding at least two, and more likely four, years to that process.AOS' current board and management have years of experience in the oil sands industry and understand the business and regulatory processes.On another front, the dissidents have sought to divert attention from their true motives by altering their slate of nominees to exclude their two ring-leaders, Mr. Chad Dust and Mr. Dwayne Tyrkalo."The fact is that we believe Mr. Dust and Mr. Tyrkalo remain the puppet masters directing the dissidents' strategy behind the scenes", Mr. Crawford said.Mr. Dust's and Mr. Tyrkalo's motives in organizing the dissident group raise serious concerns. Mr. Dust held a senior position at AOS until he was terminated in July 2010. He and Mr. Tyrkalo are now directors of Sunridge Energy Corp. ("Sunridge"), a small exploration and development company that has tried to foist its unproven technology on AOS. (AOS' proxy circular contains further details of interactions between AOS and Sunridge.)AOS' current board and management remain committed to a robust action plan. Over the next year, they intend to: * Guide the Clearwater Phase I project application through an ERCB hearing, if required, and to approval; * Assess and mitigate any impact of the proposed Fort McMurray Urban Development Sub-Region plan on the Clearwater project; * Secure sufficient development funding for Clearwater Phase I; * Secure the personnel and negotiate contracts to build Clearwater Phase I; * Continue to evaluate the results of the 2012 exploration program at Grand Rapids; * Consider a further planned exploration program at the Grand Rapids bitumen deposit; * Review options for an exploration program at the Algar Lake deposit; * Rationalize AOS' conventional oil and natural gas assets; and * Aggressively evaluate other options to add shareholder value."The dissidents repeatedly lash out at the current board and management team", Mr Crawford said. "Yet they offer no concrete, constructive plan of their own to deal with AOS' challenges." AOS shareholders will be electing directors at the annual and special meeting on June 28, 2012. Shareholders are urged to vote their BLUE proxy in favour of management's seven nominees.Proxies must be received before 10:00 a.m. (Calgary time) on Tuesday, June 26, 2012.Shareholders who have any questions on how to vote should call Kingsdale Shareholder Services toll-free at 1-866-229-8263 or call collect at 416-867-2272 for assistance in voting the BLUE proxy.About Alberta Oilsands Inc.Alberta Oilsands is engaged in the exploration and development of bitumen in the Athabasca oil sands region of northeast Alberta. Its head office is located in Calgary. Alberta Oilsands' common shares are traded on the TSX Venture Exchange under the trading symbol AOS. Cautionary Note Regarding Forward-Looking InformationThis press release contains forward-looking statements and forward-looking information (collectively, "forward-looking information"). In particular, this press release contains forward-looking information with respect to expectations regarding the future exploration and development plans. A description of the assumptions used by AOS to develop forward-looking information and the risk factors that may cause actual results to differ materially from the forward-looking information contained in this press release can be found in AOS' Annual Information Form and Management's Discussion and Analysis for the year ended December 31, 2011 located on the SEDAR website at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof and AOS undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. 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 release.For further information please contact:Jack Crawford, Chairman (403) 232-3341 Email: jcrawford@aboilsands.caMichael Lee, President and Interim CEO (403) 232-3371 Email: mlee@aboilsands.caBernard Simon Vice-President - Kingsdale Communications Inc. (416) 867 2304 Email: bsimon@kingsdalecommunications.comWebsite: www.aboilsands.caTo view this press release as a webpage, please click on the following link: http://www.usetdas.com/pr/aospr06112012.htmSource: Alberta Oilsands Inc. (TSX-V AOS) www.aboilsands.ca Maximum News Dissemination by FSCwire. http://www.fscwire.com