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CALGARY, Dec. 10 /CNW/ - Alberta Oilsands Inc. (the "Company" or "AOS")

announces that its board of directors has approved a $7.0 million winter

capital program for the remainder of 2009 and the first quarter of 2010. The

program will consist of both conventional drilling in Northwest Alberta and

Northeast British Columbia, and certain oil sands coring expenditures in the

Ft. McMurray region of Alberta.

AOS currently has two drilling rigs operating in the Peace River Arch

area of Alberta and Wildmint, BC. AOS plans to drill 4 to 5 conventional wells

in an exploration program targeting large gas reserves, with associated

liquids, and light oil primarily in Slave Point carbonates and in shallower

formations. AOS has earned a 50% working interest on 11 sections of land in

this area through an existing farm-in on the property which is located between

the Lady Fern field and the Hamburg Slave Point gas field. The Company plans

to follow up on its successful first quarter 2009 Slave Point discovery at

13-29, by drilling a second similar Slave Point anomaly, as defined by 3D

seismic, located several miles to the South.

Immediately across the British Columbia border, at Wildmint, AOS is

drilling a further Slave Point exploration well where the Company intends to

earn 7.5 sections through an existing farm-in on a structural horst block

which the Company expects to be analogous to the Buick Creek Slave Point pool

which has cumulative production of 32 BCF (billion cubic feet)(1) to date. AOS

has access to a further 17 sections of land, on the Peace River Arch, at Hines

Creek, through a separate farm-in. Additional exploratory locations and/or

contingent locations are likely but will depend on successful drilling results

of the initial wells.

On December 3, 2009, AOS received an Oilsands Exploration Permit (OSE)

from Alberta Sustainable Resource Development (SRD) for its winter oil sands

coring program. Immediately after freeze-up AOS expects to commence this

program which is anticipated to begin with a multi-well core hole drilling

program on the Company's Hangingstone oil sands leases. Up to 10 core holes

are planned at the Company's 50% working interest Hangingstone (Halfway Creek)

acreage; the Company's joint venture partner in the area will be the operator

of this program which will target bitumen in the McMurray formation.

Additionally, a 6 to 8 well coring program has been budgeted for the Company's

100% working interest oil sands leases in the area. The winter coring program

is also expected to include the drilling of core holes at the Company's Algar

Lake, Clearwater East and Clearwater North lands. In total, AOS has 140.5

gross (121.2 net) sections of Oilsands leases.

Alberta Oilsands Inc. is a technically driven high growth energy company

focused on the development and conversion of the company's oil sands resources

to reserves and the creation of long term sustainable value by increasing

production and cash flow on relevant conventional oil and natural gas assets.

Analogous Information. In this new release, AOS has provided information

with respect to certain of its conventional oil and gas opportunities which is

"analogous information" as defined in National Instrument 51-101 - Standards

of Disclosure for Oil and Gas Activities. This analogous information includes

estimates of historical production amounts in the Buick Creek Slave Point

pool. This analogous information is derived from publicly available

information sources which are predominantly independent in nature. Some of

this data may not have been prepared by qualified reserves evaluators or

auditors and the preparation of any estimates may not be in strict accordance

with Canadian Oil & Gas Evaluation Handbook. Regardless, estimates by

engineering and geo-technical practitioners may vary and the differences may

be significant. AOS believes that the provision of this analogous information

is relevant to AOS' activities, given its acreage position and operations

(either ongoing or planned) in the area in question, however, readers are

cautioned that there is no certainty that any of the development on AOS'

properties will be successful to the extent in which operations on the lands

in which the analogous historical production information is derived from were

successful, or at all.

Forward-Looking Statements and Information: This press release contains

certain forward-looking statements and information ("forward-looking

statements") within the meaning of such statements under applicable securities

law including management's assessment of the Company's properties, production

and prospects. Forward-looking statements are frequently characterized by

words such as "plan", "expect", "project", "intend", "believe", "anticipate",

"estimate", "may", "will", "potential", "design", "proposed" and other similar

words, or statements that certain events or conditions "may" or "will" occur.

In particular, this news release contains forward-looking statements and

information with respect to: (i) possible SAGD in-situ development (including

the timing of such development) on the Company's oilsands properties,

including in respect of pilot projects and further development in respect of

its Fort-McMurray properties; (ii) the results of such oil sands development;

(iii) the results of the Company's winter core drilling program; and (iv) the

results of drilling and further development on, and the ability to realize any

additional future production from, the Company's farm-in lands and other

conventional oil and gas properties described in this news release, including

the Company's ability to fund future developments. These statements are only

predictions. Forward-looking statements are based on the opinions and

estimates of management at the date the statements are made, and are subject

to a variety of risks and uncertainties and other factors that could cause

actual events or results to differ materially from those projected in the

forward-looking statements. These factors include the inherent risks involved

in the exploration and development of oil sands and conventional oil and gas

properties, the uncertainties involved in interpreting drilling results and

other geological data, the possibility that royalties and other government

levies could be increased, fluctuating oil and gas prices, the possibility of

cost overruns or unanticipated costs and expenses, uncertainties relating to

the availability and costs of financing needed in the future and other factors

including unforeseen delays. As an oil sands focused enterprise, the Company

faces risks, including those associated with exploration, development,

approvals and the ability to access sufficient capital from external sources.

Anticipated exploration and development plans relating to the Company's

properties are subject to change. For a detailed description of the risks and

uncertainties facing the Company and its business and affairs, readers should

refer to the Company's annual financial statements, management discussion and

analysis and annual information form for the year ended December 31, 2008 as

well as the Company's management discussion and analysis for the period ended

September 30, 2009, all of which are available at