Athabasca Oil Corporation Provides Operations Update
CALGARY – Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or “the Company”) is pleased to provide an update on recent operational activities.
Athabasca achieved first oil at Hangingstone in July. The Company now has 15 well pairs on production with an additional six well pairs on circulation. Bitumen production has averaged 3,200 bbl/d to date in September with current production in excess of 4,000 bbl/d. Reservoir response, plant reliability and initial production ramp-up continues to meet management’s expectations. Athabasca has already achieved the low-end of its 2015 year-end Thermal Oil exit guidance of 3,000 – 6,000 bbl/d (December average). Production is expected to ramp up to the planned 12,000 bbl/d in Q4 2016 with no additional development capital required.
In the Duvernay, Athabasca resumed drilling operations in early September on a two well pad in the volatile oil window at Kaybob East (Section 5-65-18W5). Completions operations are expected in October with an on-stream date in Q1 2016. The purpose of this pad is to test higher completion proppant loading and continue validation of the potential of the volatile oil window where Athabasca holds a significant land position. The Company expects to see significant cost improvements through multi-well pad efficiencies, utilization of a new fit for purpose rig and reductions from the current service cost environment. The Company has also spud a Montney well at Placid 11-17-60-23W5 to follow up on two successful wells drilled in winter 2015. Athabasca expects that this limited Montney development will provide economic returns in today’s market while ensuring the Placid area is set up for development in the future when commodity prices improve. Athabasca reiterates its 2015 Light Oil capital guidance of $203 million and exit rate guidance of 7,000 – 8,000 boe/d (December average).
As at September 28, 2015 the Company has cash and cash equivalents of approximately $687 million and funding in place of approximately $1 billion, including cash and cash equivalents, undrawn credit facilities and the last promissory note. Athabasca anticipates 2015 year-end funding in place in excess of $800 million. The Company maintains significant flexibility to adapt its capital program to protect its balance sheet and is prepared to implement a minimal 2016 capital budget with continued uncertain market conditions.
About Athabasca Oil Corporation
Athabasca Oil Corporation is a Canadian energy company with a focused strategy on the development 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.
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