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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

Comment by mlcb2525on Feb 27, 2021 12:07pm
195 Views
Post# 32678990

RE:RE:RE:RE:RE:RE:RE:RE:Hedges

RE:RE:RE:RE:RE:RE:RE:RE:Hedges I do not agree with you. First, they only hedged approximately 50% of their production to protect their capex program. This seems reasonable at the time (hindsight is 20/20) as who could have forseen the increase that has happened so far this year. The answer is no one. Second, they do not have hedges going forward outside of WCS differentials, so they will have future cash flow benefit assuming oil prices remain strong.

I believe, they will have positive cash flow in Q1 above and beyond their base line projections from the recent rise in oil prices. While I believe the short to medium term sentiment for oil prices remain positive, I do hope they put the debt issue behind them as soon as possible, as sentiment can change at the drop of the hat.
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