CALGARY, March 6, 2014 /CNW/ - As previously communicated, Athabasca Oil
Corporation (TSX: ATH) ("Athabasca" or "the Company") completed a
detailed review of its near term exploration and development priorities
late last year with a view to allocate capital between its many
development opportunities. As a result, the Company announced an
initial 2014 capital budget focused on its key near term priorities,
including the completion of Hangingstone Project 1, preparation for a
Hangingstone Expansion and a targeted Duvernay drilling and completion
program.
Additional projects in Thermal Oil will be considered only when
additional financing for those projects has been assured; however, the
company is progressing technical work on these significant assets to
prepare for future opportunities.
As the Company moves forward, it anticipates that the Fort McKay First
Nation's recent discontinuance of its appeal against the Dover
Commercial Project ("DCP") will pave the way for full regulatory
approval of the DCP. Upon receipt of those approvals the Company
intends to exercise the Dover put option and anticipates closing of the
associated transaction to occur in the second quarter.
Upon receipt of the Dover put option proceeds, affirmation of the
productivity of Athabasca's new Duvernay wells and clarification on the
outcome of its Duvernay joint venture process, Athabasca expects to
revise its 2014 capital program. It anticipates issuing an updated
budget in July.
As part of Athabasca's continuing focus on capital discipline, it has
decided to reduce its workforce by approximately 15 percent,
predominantly in the Calgary office. The reductions largely affect
employees associated, directly or indirectly, with projects for which
funding will not be allocated in the near term.
"The quality of our teams at Athabasca has been and continues to be
exceptional," says Sveinung Svarte, President and CEO. "However,
capital discipline is key to our future success and these difficult
staffing decisions are in alignment with our near term capital focus.
My sincere thanks to the individuals who are leaving Athabasca for
their many contributions."
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. Athabasca's
common shares trade on the TSX under the symbol "ATH". For more
information, visit www.atha.com.
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", "should," "believe", "intend", "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 current plans, objectives, goals,
strategies, estimates, assumptions and projections about the Company'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 Company's
capital expenditure programs for 2014 and beyond; the expected timing
of the receipt of regulatory approval for the Dover Commercial Project,
the timing of the Company's exercise of the Dover put option and the
timing of receipt of the sale proceeds from the sale of its Dover
interests; the Company's drilling plans, in particular, with respect to
the Duvernay asset; the Company's plans for, and results of,
exploration and development activities; the Company's future business
plans; and the Company's expectations regarding the outcome of its
Duvernay joint venture process.
With respect to forward-looking information contained in this News
Release, assumptions have been made regarding, among other things: the;
the regulatory framework governing the receipt of regulatory approval
for the Dover Commercial Project; the timing of receipt of regulatory
approval for the Dover Commercial Project; the impact that the
agreements relating to the PetroChina transaction will have on the
Company, including on the Company's financial condition and results of
operations; future capital expenditures to be made by the Company;
future sources of funding for the Company's capital programs; the
Company's future debt levels; and the Company'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 Company's most recent Annual Information Form filed on March 28,
2013 that is available on SEDAR at www.sedar.com, including, but not limited to: general economic, market and business
conditions; dependence on Phoenix Energy Holdings Limited ("Phoenix")
as the joint venture participant in the Dover Commercial Project;
failure to satisfy certain conditions in connection with the Company's
debt and credit facilities; factors affecting funding, including the
development of new business opportunities, the availability of
financing; the potential impact of the exercise of the Dover put option
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
option transaction in 2014 or at all; increases in operating costs
making projects uneconomic; the substantial capital requirements of the
Company's projects; the need to obtain regulatory approvals and
maintain compliance with regulatory requirements; the potential for
management estimates and assumptions to be inaccurate; failure by
counterparties (including without limitation Phoenix) to comply with
contractual arrangements between the Company and such counterparties;
Aboriginal claims; claims made in respect of the Company's operations,
properties or assets; risks arising from future acquisition and joint
venture activities; risks that joint venture arrangements will not
perform as expected; and volatility in the market price of the common
shares. 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
