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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 Duxingon Nov 07, 2017 10:21pm
70 Views
Post# 26922645

RE:RE:RE:Dec 2016 deal with Statoil

RE:RE:RE:Dec 2016 deal with StatoilBased the level of the question you asked, you don’t know too much about financing. This is a big question and No body can give a short answer in this board.

a simple example would be that you have 500k dollar. You used that money to buy a house of value 500k. Does that change the value of your property? 

For AOC’s case, it just did a property exchange. That is a total different thing from how much the company worth. Statoil spent over 1billion dollars to build the project and AOC got the property at less than half of its cost, plus it was and is a great project because of its low breakeven price.

AOC took a great risk to get the project because it was losing money at 45 WTI or lower! Now things have totally changed. Leismer project becomes the major source of AOC cash flow!

Go read its Q3 report and see how much free cash flow the project generated for AOC at average WTI 48.2, and imagine how much it is generating at current WTI 57?
Bullboard Posts