CALGARY–Alberta Oilsands Inc. has reported a first-quarter loss of $780,400, compared with year-ago earnings of $1.3 million, as sales declined to $444,300 from $1.5 million.

The junior oilsands developer said Tuesday its capital spending was $5.9 million in the January-March quarter, up from $3.8 million a year earlier.

Production averaged 58 barrels of oil equivalent per day, down from 267, while 15 core holes at the company's Clearwater projects encountered 15 to 50 metres of bitumen in the McMurray formation.

"We believe from the preliminary data that we may have two possible 10,000-barrel-a-day projects in the Clearwater area," the company stated.

"Our objectives for 2008 are to pursue the goal of bringing the Clearwater potential project to production in 2011-2012 and to advance our Hangingstone project with our partner in the area."