CALGARY, Aug. 6, 2013 /CNW/ - Athabasca Oil Corporation (TSX: ATH) has been informed that the Alberta
Energy Regulator (formerly ERCB) panel has approved the Dover
Commercial Project subject to approval by the Lieutenant Governor in
Council. The approval will be sent to the Alberta government cabinet
for their consideration. The Dover Commercial Project is operated by
Brion Energy Corporation, an operating company jointly owned by
Athabasca and a wholly owned subsidiary of PetroChina.
The in situ Dover Project has the potential to lead to the development
and production of approximately 4.1 billion barrels of bitumen
(management estimate). Within Alberta, the Dover Project is expected to
generate over 30,000 person-years of employment during construction and
over 9,000 positions during its operating life. At full production
capacity, the Project is expected to create an estimated $5.3 billion
of economic activity per year, including over $1.5 billion of annual
tax and royalty revenues for local, provincial and federal authorities.
Next steps and a detailed timeline for the project are now being
developed.
The approval included conditions and recommendations typical of oil
sands in situ projects and consistent with the terms and commitments
contained in the application for approval.
Athabasca is very appreciative of the substantial efforts of all
contributors to this positive outcome - the regulators, the
stakeholders and the employees.
About Athabasca Oil Corporation
Athabasca Oil Corporation is a dynamic, Canadian energy company with a
diverse portfolio of thermal and light oil assets. Situated in
Alberta's Western Canadian Sedimentary Basin, the Company has amassed a
significant land base of extensive, high quality resources. With 10.6
billion barrels of bitumen resources (contingent resources, best
estimate) and growing light oil production, Athabasca aspires to become
a major oil producer. Athabasca's common shares trade on the TSX under
the symbol 'ATH'.
Reader Advisory:
This News Release contains forward-looking information that involves
various risks, uncertainties and other factors. All information other
than statements of historical fact is forward-looking information. The
use of any of the words "anticipate," "plan," "continue," "estimate,"
"expect," "may," "will," "project," "should," "believe," "predict,"
"pursue" and "potential" and similar expressions are intended to
identify forward-looking information. The forward-looking information
is not historical fact, but rather is based on the Company's, and its
subsidiary, Brion Energy Corporation's ("Brion") current plans,
objectives, goals, strategies, estimates, assumptions and projections
about the Company's and Brion's industry, business and future financial
results. This information involves known and unknown risks,
uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking
information. No assurance can be given that these expectations will
prove to be correct and such forward-looking information included in
this News Release should not be unduly relied upon. This information
speaks only as of the date of this News Release. In particular, this
News Release may contain forward-looking information pertaining to the
following: the expected timing of full regulatory approval of the Dover
project; the Company's and Brion's capital expenditure programs; the
Company's and Brion's plans for, and results of, exploration and
development activities; the Company's and Brion's estimated future
commitments, business plans, and sanctioning of projects; the Company's
and Brion's development of its Dover project; timing of facilities
construction and timing of production; the use of in-situ recovery
methods such as Steam Assisted Gravity Drainage (SAGD) for production
of recoverable bitumen; long term production goals; timing of
submission of regulatory applications; estimated timing of first
steaming; the Company's and Brion's internal sanction for development
of the Dover project; estimated initial and full production of the
Dover project; the expected total work force required for the
construction and operation of the Dover project; the expected number of
jobs to be created by the Dover project; and the expected economic and
other benefits to be realized from the Dover project.
With respect to forward-looking information contained in this News
Release, assumptions have been made regarding, among other things: the
the Brion's ability to obtain qualified staff and equipment in a timely
and cost-efficient manner; the regulatory framework governing
royalties, taxes and environmental matters in the jurisdictions in
which Brion conducts and will conduct its business; the applicability
of technologies for the recovery and production of the reserves and
resources within the Dover project; future capital expenditures to be
made by the Company and by Brion; future sources of funding for the
Company's and Brion's capital programs; geological and engineering
estimates; and the Company's and Brion's ability to obtain financing on
acceptable terms.
Actual results could differ materially from those anticipated in this
forward-looking information as a result of the risk factors set forth
in the Athabasca's most recent Annual Information Form filed on March
27, 2012 ("AIF") that is available on SEDAR at www.sedar.com, including, but not limited to: fluctuations in market prices for crude
oil, natural gas and bitumen blend; general economic, market and
business conditions; variations in foreign exchange and interest rates;
factors affecting potential profitability; factors affecting funding,
the priorities of the Company, Brion and of each of their respective
current and future joint venture partners; general economic conditions;
uncertainties inherent in estimating quantities of reserves and
resources; uncertainties inherent in SAGD; the potential impact of the
exercise of the Dover put/call options on the Company; failure to meet
the conditions precedent to the exercise by the Company of the Dover
put option, including failure to obtain necessary regulatory approvals
for completion of the Dover put/call option transaction in 2013 or at
all; failure to meet development schedules and potential cost overruns;
increases in operating costs making projects uneconomic; the effect of
diluent and natural gas supply constraints and increases in the costs
thereof; gas over bitumen issues affecting operational results;
environmental risks and hazards and the cost of compliance with
environmental regulations; failure to obtain or retain key personnel;
the substantial capital requirements for the Dover project; the need to
obtain regulatory approvals and maintain compliance with regulatory
requirements; changes to royalty regimes; political risks; risks
inherent in Brion's operations, including those related to exploration,
development and production of oil sands reserves and resources,
including the production of oil sands reserves and resources using
SAGD; the potential for management estimates and assumptions to be
inaccurate; reliance on third party infrastructure for project
facilities; failure by counterparties (including without limitation
Phoenix) to comply with contractual arrangements between the Company
and such counterparties; the potential lack of available drilling
equipment and limitations on access to the Dover project assets;
Aboriginal claims; seasonality; hedging risks; insurance risks; claims
made in respect of Brion's operations, properties or assets;
competition for, among other things, capital, the acquisition of
reserves and resources, export pipeline capacity and skilled personnel;
the failure of Brion or the holder of certain licenses or leases to
meet specific requirements of such licenses or leases. The
forward-looking statements included in this News Release are expressly
qualified by this cautionary statement. Athabasca does not undertake
any obligation to publicly update or revise any forward-looking
statements except as required by applicable securities laws.
SOURCE: Athabasca Oil Corporation
