Athabasca Oil Creation of “Duvernay Energy Corporation” - Athabasca and Cenovus combine Kaybob assets to create pure-play Duvernay entity
- Exposure to ~200,000 gross acres including a newly operated 100% WI position of ~46,000 acres
- Leverages significant prior de-risking activity to date on Athabasca’s Duvernay assets
- Debt-free entity seeded with $40 million cash and a $50 million credit facility
- Production of ~2,000 boe/d with a self-funded development plan to ~25,000 boe/d (~75% Liquids)
- Athabasca Thermal Oil budget & Return of Capital commitment of 100% Free Cash Flow remain intact
- Athabasca and Duvernay Energy will be positioned as two separate companies with independent capital allocation frameworks
CALGARY, Alberta, Dec. 19, 2023 (GLOBE NEWSWIRE) -- Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or “the Company”) is pleased to announce it has entered into transaction agreements (“Transaction”) to create Duvernay Energy Corporation (“Duvernay Energy”) with Cenovus Energy Inc. (“Cenovus”). Duvernay Energy will be a standalone self-funded entity that will drive strong, high netback cash flow and production growth and is expected to unlock significant value. The transaction is aligned with Athabasca’s strategy to maximize cash flow per share growth and return capital to shareholders.
Athabasca Oil Announces Creation of “Duvernay Energy (globenewswire.com)