Alberta Star Development Corp. (ASX.V) today provided the
following update on corporate development activity since the
implementation of management and Board changes in July 2012. Since
1. Management has reviewed a number of advanced stage investment
opportunities in the precious metals sector, taking advantage of
the extensive experience of new director, Tom Ogryzlo, in the
financing, engineering, construction and operation of mining
projects on a worldwide basis. His expertise and extensive database
of contacts has proven invaluable in fast-tracking the due
diligence process, with no definitive agreements having yet been
reached, ASX said in a statement.
2. Oil and gas development opportunities have been considered,
none of which have offered potential returns attractive enough to
offset the level of risk involved.
3. Production from ASX's heavy oil properties in Alberta and
Saskatchewan has averaged 108 net barrels per day, for the first
eight months of fiscal 2012.
4. Revenue from oil production has been negatively impacted this
summer by the glut of oil in mid-continental North America due to
increased production in North Dakota, Alberta and Texas and
insufficient pipeline capacity to transport this oil south to major
markets. This has resulted in Canadian oil being sold at a discount
to the West Texas Intermediate (
) benchmark crude oil price as rising production cannot find
pipeline capacity. This discount to WTI has been even greater for
heavy oil such as ASX's. "In spite of the reduction in our net-back
from the sale of our heavy oil, dramatic reductions in overhead
have been made to enable us to maintain a strong working capital
position of approximately $5.5 million," ASX said.
5. Fixed general and administrative expenses were reduced to
approximately $36,000 a month in September 2012, a decrease of 62%
over the same month a year prior.
Shares are up 2.56% to 20 cents, on volume 1,700.