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 > Other ATH tax advantage - government royalties

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Comment by Maxmoeon Feb 10, 2022 11:49am

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Post# 34416860

RE:Other ATH tax advantage - government royalties

Thanks for posting some useful info most investors are not aware of.

elducky wrote: We've discussed the tax pools at length, $700M in value, but haven't touched on royalties.

In putting my model together (still not posted because I keep getting different numbers than their guidance, so I'm asking some questions to sort it out), it occurred to me that ATH will be in the pre payout royalty rate basically forever at the rate they are drawing down the unrecovered balance. Which means they are paying the 1%-9% gross, and not the 25%-40% net that applies post payout.

Something to consider when comparing to other projects that are either in post already, or will move to post earlier. Meg unrecovered balance is at $2.7B to draw down before they move to post, and ATH's two projects sitting at $2.8B. Meg has far more production and revenue, so will get there earlier.