Athabasca Enters into Option Agreement to Sell a Portion of its Light Oil Infrastructure

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[{"type":"text","content":"\n\n\nCALGARY, Sept. 18, 2013 /CNW/ - Athabasca Oil Corporation (TSX: ATH)\n (\"Athabasca\" or \"AOC\") has entered into an option agreement with a\n third party giving the right to Athabasca, at its discretion, to sell\n up to a 50% interest in its Kaybob area light oil infrastructure for\n cash consideration of up to $145 million.\n\n\nUnder the terms of the agreement, AOC has the right on or before\n December 31, 2013 to sell to the counterparty a 25% to 50% working\n interest in AOC's light oil pipeline and other infrastructure assets in\n the Kaybob area of northwestern Alberta.  If Athabasca decides to sell\n a 50% interest in its Kaybob area infrastructure assets, AOC's cash\n proceeds would be $145 million.\n\n\nIf Athabasca exercises its rights under the option agreement, the\n counterparty will have the right to acquire, an equivalent interest in\n certain infrastructure assets in the Simonette area (also known as the\n Saxon area) of northwestern Alberta for cash consideration of up to an\n additional $15 million. AOC would remain operator of both the Kaybob\n and Simonette infrastructure assets.\n\n\nThe option agreement does not prevent AOC from including the\n infrastructure related to the option agreement as part of a joint\n venture, other material transaction involving P&NG rights, or exploring\n other avenues to monetize the infrastructure.\n\n\nThe closing of the two transactions, if exercised, are subject to\n standard closing conditions, including receipt of any necessary\n regulatory approvals and receipt by AOC of its lenders' consent.\n\n\n\"This option, if exercised, provides us the flexibility to redeploy\n capital to advance our projects in 2014 without sacrificing production\n volumes or strategic optionality for the remainder of the year\" said\n Sveinung Svarte, AOC's president and chief executive officer.  \"The\n transaction validates our view that the greater Kaybob area is an\n increasingly important growth area for future Canadian oil and gas\n production.\"  AOC is one of the largest lease holders in the area with\n more than 350,000 acres of prospective Duvernay leases of which 200,000\n acres have been high-graded.\n\n\nAbout Athabasca Oil Corporation\n\n\nAthabasca Oil Corporation is a dynamic, Canadian energy company with a\n diverse portfolio of thermal and light oil as...

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