Why Invest in ATH?

Why Invest in ATH?

Athabasca Oil Corporation offers a rich portfolio of oil assets in Alberta.

It has significant bitumen resources in thermal oil and considerable light oil and liquids-rich natural gas holdings. The company has amassed a land base of over 3.5 million acres (net) and delineated more than 12 billion barrels (gross) of contingent resource (best estimate) of which it holds approximately 9.2 billion barrels (best estimate) since the sale of its remaining 40% interest in the MacKay River thermal oil project on March 15, 2012.

The company has matured a growth strategy encompassing the synergies of long lived thermal oil projects with light oil and liquids-rich gas developments that are expected to build significant short term cash flow. We have accomplished this thanks to the dedication and hard work of a talented team of professionals in a manner which is sustainable and respectful of our stakeholders.

2012 is a pivotal year for the company as Athabasca has moved into the development phase of its projects. The infrastructure and development projects we have launched lay the foundation for sustainable production growth for many years to come. The company targets a 2012 exit rate of 8,000 to 10,000 boe per day from its Light Oil division and first oil from its Thermal Oil division in 2014. It is our goal to grow the production to between 200,000 and 260,000 boe/d by 2020, half extra heavy oil and half light oil. 

Athabasca is fully funded for all wholly owned thermal oil projects filed and its light oil program from: cash on hand; cash from operations; a reasonable level of debt; and anticipated proceeds from the Dover put/call option. Athabasca has a demonstrated history of sound capital stewardship:

September, 2006 Initial private equity placement, $100 million
December, 2006 Secondary private equity placement, $23.3 million
August, 2007 Private equity placement, $250 million
December, 2007 Flow through private placement, $27 million
July, 2008 Senior secured notes, $400 million
February, 2010
Sale of 60% of Dover and MacKay to PetroChina, $1.9 billion
$430 million loan from PetroChina replaces previous debt
March, 2010 Paid dividend, $1.3 billion
April, 2010
IPO, company raises $1.3 billion
November, 2010 Acquisition of Excelsior Energy, $133 million
March, 2012
Sale of remaining 40% of MacKay, $680 million
Retired all outstanding debt, $474 million 

It is the synergy of good quality assets, top tier people, and the necessary funding that enables Athabasca to continue attracting the very best talent and create shareholder value. Alberta is well placed to be a secure supplier to the world’s energy demand. Athabasca, an Alberta company, is well placed to grow and contribute its part.

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Investors

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View our 2012 Annual Report