Athabasca Oil Corp T.ATH

Royalty Deal Details

[ManitobaCanuck]

Royalty is triggered. At this pricing level, Hangingstone Project 1 is estimated to have an annual operating netback of approximately $120 million (net of a $4 million upsized Royalty payment). The Royalty is not expected to materially impact economics of future Hangingstone expansion phases or other future Thermal Oil development projects and there are no associated commitments for future development.

Hangingstone				Other Thermal Assets
Realized Bitumen Price	Royalty	Implied WTI*		Realized Bitumen Price	Royalty	Implied WTI*
$C/bbl	%	US$/bbl		$C/bbl	%	US$/bbl
Below $50/bbl	0%			Below $60/bbl	0%
$50/bbl to $69.99/bbl	2%	$75-91		$60/bbl to $79.99/bbl	2%	$78-94
$70/bbl to $89.99/bbl	4%	$91-108		$80/bbl to $99.99/bbl	4%	$94-110
$90/bbl to $109.99/bbl	6%	$108-124		$100/bbl to $119.99/bbl	6%	$110-126
$110/bbl to $129.99/bbl	8%	$124-141		$120/bbl to $139.99/bbl	8%	$126-142
$130/bbl to $149.99/bbl	10%	$141-157		$140/bbl to $159.99/bbl	10%	$142-159
$150/bbl and above	12%	>$157		$160/bbl and above	12%	>$159

[Eigen337]

This post has been removed in accordance with Community Policy

[Eigen337]

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[Mindset]

Wake me up when WCS is $100.  There is no other oil stock leveraged to higher prices than ATH. That's the story. Royalties will matter to the stocks valuation maybe in a couple years when/if it gets taken out.  I think you know all this, but I think you just hate current management and want them gone.  I do too.    

[ComradeKomissar]

It is more important to remove the negative impact of hedging, than paying royalties. Y'all be focusing on the wrong 'ting.

[Eigen337]

This post has been removed in accordance with Community Policy