Athabasca Oil Corporation Reports Third Quarter 2015 Financial and Operating Results

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Athabasca Oil Corporation Reports Third Quarter 2015 Financial and Operating Results

by ahnationtalk on November 5, 2015398 Views

Press Release

CALGARY – Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or “the Company”) is pleased to provide its third quarter 2015 financial and operating results.

Highlights from the quarter and recent accomplishments:

  • Corporate production – Third quarter production averaged 7,250 boe/d of which Light Oil accounted for 5,145 boe/d and Thermal Oil accounted for 2,105 bbl/d;
  • Hangingstone – The initial production ramp-up continues to progress with current production in excess of 5,200 bbl/d. The Company’s updated Thermal Oil exit guidance is between 5,000 – 7,000 bbl/d (from 3,000 – 6,000 bbl/d);
  • Duvernay – The Company is realizing significant drilling efficiencies utilizing a new fit for purpose rig and multi-well pad sites. A two well pad in the volatile oil window was rig released at Kabob East with drilling costs of $3.7 million and $2.8 million, respectively. The Company is now drilling a four well pad in the condensate rich window at Kaybob West with total drilling and completion (“D&C”) costs estimated to be approximately $10 million per well;
  • Montney – At Placid, Athabasca is drilling a pad of three wells and estimates its costs will be approximately $8 million per well. The Company is planning to pipeline connect the Placid area to its extensive Kaybob infrastructure during the winter of 2016. This area is expected to provide significant future growth potential while also providing downside protection in an extended low commodity price environment;
  • Guidance – The Company has reduced its 2015 capital budget by an additional 10% to $256 million, with upwardly revised corporate exit guidance between 12,000 – 15,000 boe/d (from 10,000 – 14,000 boe/d). The 2016 budget will be released in early December and in light of the commodity price environment the Company expects to implement a minimal capital program of less than $100 million to protect its balance sheet and liquidity position;
  • Balance sheet position – Maintaining a strong financial position continues to be a top priority for Athabasca. As at November 1st, the Company has approximately $970 million of funding in place including approximately $790 million of cash, cash equivalents and proceeds from the last Phoenix Energy Holding Limited promissory note; and
  • Cost structure – Subsequent to the quarter, Athabasca completed a cost structure review. Gross G&A costs are expected to total $40 – $45 million in 2016, representing an approximate 25% reduction from 2015 and a 55% reduction from 2014.

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