Alberta Star Provides Corporate Update

By Staff,

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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 that time:

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 ( WTI ) 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: WTI

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