Dec 20 2010
Alberta Star Development Corp. (TSX VENTURE:ASX)(OTCBB:ASXSF)(FRANKFURT:QLD) has announce that the Company has successfully drilled and cased a second well in the Company's Phase 2 Drilling Program and has entered into a credit facility agreement with a Canadian chartered bank.
PHASE 2 DRILLING UPDATE - LANDROSE, SASKATCHEWAN
The Company has announced that the Company has successfully drilled and cased it's second well (50% working interest to the Company) in its Phase 2 Drilling Program in Landrose, Saskatchewan. The Company's Phase 2 Drilling Program is scheduled to consist of three in-fill wells, the first well located on Section 16-50-26-W3M and the second and third wells located on Section 6-50-25-W3M. The drilling rig has moved to the third well location and has spudded, with the third well expected to be drilled and completed within the week. The first well, situated on Section 16 was completed last week and is expected to commence production of heavy oil prior to end of December. Production from the newly drilled second well is expected to commence prior to the end of December 2010. The Company holds a 50% working interest in the Phase 2 wells at Landrose, Saskatchewan.
The second and third in-fill wells of the Phase 2 Drilling Program are located adjacent to the Company's three (3) producing heavy oil wells (Phase 1 Drilling Program) located on Section 6-50-25-W3M at Landrose, Saskatchewan.
CREDIT FACILITY
The Company is pleased to announce that it has entered into a credit facility agreement with a Canadian chartered bank located in Calgary, Alberta. The credit facility consists of an operating facility of $800,000 at an interest rate of bank prime plus 2.0% and a development facility with a $300,000 limit at an interest rate of bank prime plus 2.5%. These new banking facilities will provide the Company with additional flexibility in respect to its growing day- to- day operations, and to increase its production profile and exploration and drilling activities in 2011. The Company has a strong balance sheet and cash position, has increased it's production profile and these factors, combined with the addition of flexible credit facilities are expected to fuel the Company's production growth plans in the oil and gas sector in 2011.
Source: Alberta Star Development Corp.