VANCOUVER, BRITISH COLUMBIA–(Marketwired – Apr 24, 2013) – Alberta Star Development Corp. (TSX VENTURE:ASX)(ASXSF)(FRANKFURT:QLD) has completed the previously announced sale of its heavy oil assets in Alberta and Saskatchewan to Petrocapita Oil and Gas L.P. (“Petrocapita”) of Calgary, Alberta for total net cash consideration of $1,900,513 after taking into account initial industry standard adjustments to the agreed purchase price of $1,875,000. The effective date of this transaction is March 1, 2013, with final adjustments to be calculated 90 days following closing.
As part of the transaction, Alberta Star terminated a sub-participation agreement it had entered into with Arctic Hunter Energy Inc. (“Arctic Hunter”) in respect of certain of the heavy oil assets which were sold to Petrocapita. Alberta Star paid Arctic Hunter cash consideration of $72,000 for the termination. In accordance with the policies of the TSX Venture Exchange, Alberta Star and Arctic Hunter are considered Non-Arm’s Length Parties by virtue of having certain common directors and officers.
As a result of this transaction, Alberta Star has increased its cash position by in excess of $1.8 Million and has reduced its liabilities by $608,918 as a result of the elimination of the decommissioning liability that was associated with these heavy oil assets.