Alberta Oilsands has said it intends to grow its Alberta operations despite doubling its losses year-on-year to C$800,000 and uncertainty around the technology and markets needed to work its acreage for profit.

The company stock finished the day with a 7.69 percent slide by the end of trading Monday.

Unmoved by the "minimal" impact of the Canadian province's new royalty regime, AO managers said technology would "offset" any "revisions". After all, 320 million barrels are said to be at hand.

Yet, in quasi-legal language, Alberta Oilsands managers appeared to hint at "a high level of uncertainty” over the company's “possible recovery of any of these resources” due to “scope and timing” of projects at Fort McMurray, the “the company’s ability to finance any potential oil sands projects at its Fort McMurray properties” and the “proposed reliance on technologies” not yet proven commercially in oil sands situations.

“Challenging market conditions” aside, Alberta Oilsands said it had a strong balance sheet and was on track to apply for a development permit in 2009 for its first oil sands project of perhaps 10,000 barrels per day on the Athabasca fairway of Northern Alberta.

The company also said it could develop its $464 million Clearwater project sites at US$55 per barrel.

Tags: Alberta Oilsands Inc.