Athabasca Oil Corp T.ATH

Alternate Symbol(s): ATHOF

Energy Oil & Gas E&P

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.

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Athabasca Oil Corp

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Comment by BargainHunter88on Mar 19, 2017 11:51pm

92 Views

Post# 26000639

RE:Montney not Cardium

Thanks for the correction, I got it mixed up with Transglobe.

You are right about the production being mostly heavy oil, but the production growth will be coming from light oil, which will reach 7000 BOED based on guidance. If oil stays above $50, that should have the company trading at about 8X future cash flow, in addition to VERY LOW EV/2P (<$1 per barrel) and EV/BOED ($29400) ratios.

The heavy oil assets provide product leverage while the balance sheet of the company is not as stretched as some of the other names e.g. MEG BTE. If oils stays around $50 for the next few years, ATH will be just fine. But if oil takes off to $60, the company will do very well.

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