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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 retiredcfon Dec 27, 2023 3:30pm
339 Views
Post# 35801639

Good Answer

Good AnswerWhat are your thoughts on the spin off of light oil assets? In your opinion, do you think CVE purchases the oil sands assets at a later date?

We think it makes sense. The spin out will be self funding, and investors have not been attributing value to ATH's Duvernay assets, even though the area remains one of the hottest in the sector. The assets are adjacent to many large peers, so could also be a target down the road. The spin off does not impact ATH's 2024 cash flow, and once at critical mass, the spin out could be IPO'd to bring out even more value. We think CVE is probably interested in buying but with ATH now debt-free, we would not expect it to be interested in selling at historically low valuations. (5iResearch)
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