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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

Post by cahclickon Apr 23, 2021 9:24am
246 Views
Post# 33054224

Other Possibility

Other Possibility

 

It could be that ATH is taking advantage of oil prices to pay down some of their debt before refinancing. This would have two benefits; one is the obvious lower balance to refinance, and secondly is that paying down debt using fcf demonstrates they are less risky therefore commanding a lower loan rate. I personally feel that they could easily have completed a deal by now as others have demonstrated so it makes me believe they are attempting to achieve something else before refinancing.

One thing for sure, if oil stays at or above the 2021 Q1 level, they are generating great fcf.

It could also be that they will announce the refinancing as part of the upcoming Q1 results.

This is all pure wild azz speculation on my part.

glta
 

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