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Athabasca Oil Corp T.ATH

Alternate Symbol(s):  ATHOF

Athabasca Oil Corporation (AOC) is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. AOC’s segments include Light Oil and Thermal Oil. The Thermal Oil segment includes the Company’s assets, liabilities and operating results for the exploration, development and production of bitumen from sand and carbonate rock formations located in the Athabasca region of Northern Alberta. It also consists of two operating oil sands steam assisted gravity drainage projects and a resource base of exploration areas in the Athabasca region of northeastern Alberta. The Light Oil segment includes its assets, liabilities and operating results for the exploration, development and production of light crude oil and medium crude oil, tight oil and conventional natural gas. Its Light Oil segment consists exclusively of the Duvernay in the Greater Kaybob area with about 155,000 gross acres across Kaybob West, Kaybob North, Kaybob East and Two Creeks.


TSX:ATH - Post by User

Bullboard Posts
Post by blue_eagleon Jul 28, 2014 10:52pm
476 Views
Post# 22789441

Summation

SummationAthabasca Oil Corp. (ATH) lost 47 cents to $6.41 on 10.4 million shares. The stock has fallen from $7.80 at the beginning of the month, on fears that the company will not receive a $1.23-billion payment owed by PetroChina. Under the terms of a put option Athabasca exercised in April, PetroChina is obligated to buy the company's 40-per-cent interest in the Dover oil sands project in Alberta. The proceeds were originally expected by June 30. Since that day, various sources -- generally anonymous -- have declared that PetroChina: (i) will honour the contract; (ii) will not honour the contract (even though it is binding); or (iii) will try to negotiate a reduced payment. All this comes amidst a Chinese corruption probe that has led to a string of arrests of PetroChina executives connected to Athabasca. Today, Athabasca's management tried to put out the fire by announcing that it is working to close the deal in accordance with the put/call option terms, implying that it will not accept anything less than what it is owed. IR man Matthew Taylor also told the Financial Post this weekend that Athabasca is in the last stages of closing the deal with PetroChina and will issue an update "in a timely fashion." ("Timely" must mean by Aug. 6, the day Athabasca will release its second quarter financials. If the deal has not closed by then, shareholders will want a detailed explanation.) Raymond James analyst Chris Cox is skeptical. He wrote in a research note today that he does not "foresee any improved clarity on [the Dover] issue for some time," and slashed his price target to $7.50 from $10.
Bullboard Posts