Alberta Oil Sands CVE:AOS $0.145

I apologize for the lack of posts, my wife and I recently had our first child, so things have been a bit hectic. This will be short as I'm typing it one handed on my iPad with a baby in the other arm, but it isn't a complicated thesis.

AOS  used to be a company trying to develop an in situ oil sands deposit near the Ft. McMurray international airport. That didn't work out for a number of reasons, chiefly lack of cap rock and lack of money. However, the Government of Alberta has expropriated the leases for an expansion of the urban area, and AOS has applied for $56 million in compensation. The company has a current market capitalization of only $30 million with no debt, so this would be material, and make the company a significant net-net. 

They also have other assets in Alberta and Africa, but are not spending money on them. I assume no value for those assets, but if someone makes a discovery on adjacent land they could have upside optionality for farm out or JV.

disclosure: Long AOS

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