– Acquisition of ~24,000 bbl/d of Stable Production with ~US$44/bbl WTI Break Evens

– Establishes Athabasca as a ~40,000 boe/d (90% liquids) Intermediate Producer in 2017

– Upgrades Asset Portfolio and Business Resiliency to Lower Oil Prices

– Strong Base Cash Flow Generates a Funded Growth Profile and Accelerates Free Cash Flow Horizon

– Attractive Acquisition Metrics of ~$24,000/bbl/d, ~5.8x P/CF and ~$0.68/bbl 2P

– Highly Accretive to 2017e and 2018e Cash Flow and Reserves Per Share

– Ownership of Strategic Infrastructure including Egress Optionality for Market Access

Athabasca Oil Corporation (ticker: ATH) has entered into agreements with Statoil ASA (“Statoil”) and its wholly owned subsidiary Statoil Canada Ltd. to acquire its Canadian Thermal Oil assets for consideration of $435 million cash, 100 million common shares and contingent value payments triggered at oil prices above US$65/bbl WTI.

The acquired assets include the operating Leismer Thermal Oil Project (currently producing 24,000 bbl/d), the delineated Corner lease and related strategic infrastructure. The acquisition establishes Athabasca as an intermediate oil weighted growth company with a production base of approximately 40,000 boe/d (2017e). Upon closing, cash flow from the low decline production base will support thermal sustaining capital requirements and economic growth in the liquids rich Montney and Duvernay resource plays.

Robert Broen, Athabasca’s President and Chief Executive Officer said, “This transaction is transformational for Athabasca and establishes scale with top tier thermal assets and people. We are pleased to have Statoil, a global energy leader, as an investor in the Company. Shareholders are positioned with a unique and compelling return proposition. Athabasca has the financial strength to drive oil weighted growth at competitive metrics in the current environment.”

Paul Fulton, President, Statoil Canada, said “We are pleased to announce this agreement with Athabasca. The transaction allows Statoil to redeploy proceeds to our global portfolio of opportunities. We firmly believe Athabasca is very well placed to continue the development of these assets.”

Full release.


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