CALGARY, ALBERTA--(Marketwire - Dec. 20, 2011) - ALSTON ENERGY INC. (TSX VENTURE:ALO) (the "Company") is pleased to announce that the Company has entered into a Purchase and Sale Agreement dated December 19, 2011 (the "Agreement") with Crescent Point Energy Corp. ("Crescent Point") whereby, Crescent Point has agreed to sell certain producing and non-producing properties to the Company for a total purchase price of $3.03 Million dollars, to be paid in $1.65 Million dollars cash and 9,200,000 common shares of the Company at a price of $0.15 per share for a deemed aggregate value of $1,380,000 dollars.
Summary of Acquisition:
With this acquisition, Alston is acquiring production of 225 Boes/day from 14 operated gas wells and 3 non-operated gas wells and an average 63% interest in 41,256 gross acres of land (25,737 net acres) in its core area near Alexander Alberta. The assets include, an average 99% interest in 14 operated wells including the associated gas gathering system and production facilities and average 17% interest in the 3 non-operated wells.
The transaction is effective as of October 1, 2011 and is expected to close on February 1, 2012, subject to TSX approval and the terms and conditions of the Agreement.
Alston Energy Inc. is a Canadian based energy company engaged in the exploration and production of oil and natural gas reserves in the western Canada's sedimentary basins. Alston has working interests in producing and early-stage oil & gas exploration properties in the provinces of Alberta and Saskatchewan.
Alston Energy Inc.
Don Umbach, President
Note: BOEs may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion rations 6 mcf: 1bbl of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Cautionary Note Regarding Forward-Looking Information: This press release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect of the completion of the Acquisition on the Company; reserve estimates; estimates regarding future production; the receipt of regulatory approvals; expected management rationalization and benefits there from; and the future financial and operating performance of Alston and its projects. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social risks and uncertainties; risks relating to oil and gas exploration and exploitation activities; oil and gas prices; acquisition risks; risks relating to greater resources, time and attention will be spent on the Acquisition than anticipated; and delays in obtaining regulatory approvals. Although Alston has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Alston does not undertake to update any forward-looking information, except in accordance with applicable securities laws.Neither 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.