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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
Comment by Ranger56on Aug 28, 2014 2:02pm
201 Views
Post# 22887004

RE:Basic math

RE:Basic mathOK -- that helps and now much more interesting. thanks for the numbers.
Without bashing, let me just say that credit for asset value typically is only given by investors
when a company is actually making money and growing. But when a company is losing money and there is cash burn the credit for assets is always discounted. And the more cash burn over time the more discounted the assets become.  And sometimes for the really troubled
companies (I am not speaking of ATH when I say this) the credit for assets can be near zero, so it can be brutal sometimes to hang on to NAV. It comes down to this, if management can guide positively and meet expectations as per guidance, trust comes back, and along with this credit for their assets come back. But they need to perform first, then NAV begins to count.
In the case of ATH, the one time infusion of 1.2 B when it happens will no doubt trump any poor past performance and I can see this going to $9 +/-. But holding these levels remains uncertain.  
Bullboard Posts