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Athabasca Oil seeking Duvernay partner

Stockhouse Editorial
0 Comments| July 10, 2013

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(The Canadian Press) CALGARY _ Athabasca Oil is looking for a joint-venture partner to help develop its land in Alberta's Duvernay shale this year, CEO Sveinung Svarte said Wednesday.

The Calgary-based oil company (TSX: T.ATH, Stock Forum) intends to begin a formal process to find a deal, Svarte said at the TD Securities Calgary Energy Conference.

Athabasca disclosed nearly a year ago that it was in the early stages of forming a joint venture for its Hangingstone and Birch oilsands properties, though no deal has come to fruition yet.

On Wednesday, Svarte said that process is still ongoing.

``We're still working on that and we hope to have something done, and just cannot tell about the timing,'' he said.
``But there's still parties interested in those joint ventures and we hope to have it done.''

Another Canadian energy company, Talisman Energy Inc. (TSX: T.TLM, Stock Forum), is actively marketing its holdings in the Duvernay as part of a broader plan to trim its portfolio.

John Rossal, Talisman's senior vice-president for Canada, said the company is aiming for an outright sale.

``Our preference in the North Duvernay would probably be a cash disposition, although if the right JV opportunity came along we would certainly seriously consider that,'' Rossal told the conference.

``I think it's fair to say that the JV market may have cooled somewhat from what we've seen a year, two years ago.''
Athabasca's Svarte said the appetite for Duvernay deals is a lot greater than in the oilsands.

Athabasca shares rose 0.88% Wednesday to $6.91, leaving a market cap of $2.8 billion, based on 400.6 million shares outstanding. The 52-week range is $14.05 and $5.59.


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