Business
Athabasca Oil Announces 2013 Capital Budget and Production Guidance
CALGARY, Dec. 17, 2012 /CNW/ - Athabasca Oil Corporation (TSX: ATH) is pleased to announce ...
About this update from Athabasca Oil Corporation
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Dec. 17, 2012 /CNW/ - Athabasca Oil Corporation (TSX: ATH) is\n pleased to announce its 2013 capital budget and production guidance.\n The Company plans to invest $798 million to develop its Light Oil and\n Thermal Oil assets in Alberta. Capital expenditures will be financed\n from cash-on-hand, low-interest debt and cash flow from production.\n Athabasca reaffirms that it is on track to exit 2012 with 10,000 to\n 11,000 barrels of oil equivalent per day (boe/d) from its assets in the\n liquids-rich Deep Basin.\n\n\nPositioning the Company for growth, the 2013 capital investment includes\n $236 million for organically driven exploration and production (E&P)\n activities in the Light Oil Division and $533 million to advance\n Athabasca's various Thermal Oil assets, including the construction of\n its wholly-owned Hangingstone Project 1, a 12,000 barrel per day\n (bbl/d) SAGD project near Fort McMurray.\n\n\n\"Athabasca exits 2012 as an E&P company with a balanced portfolio of\n Light Oil production and a Thermal Oil project that's been sanctioned\n by our board of directors,\" says Sveinung Svarte, chief executive\n officer. \"Our Light Oil Division is poised to increase production,\n targeting an exit rate of 11,000 to 13,000 boe/d by the end the first\n half of 2013. At the same time, we continue to advance our Thermal Oil\n assets, and expect the Hangingstone Project 1 to be on stream before\n year-end 2014.\"\n\n\nMaintaining capital discipline, Athabasca is well funded to support its\n 2013 capital budget, with over $900 million of cash and short-term\n investments on hand, and a $200-million undrawn revolving credit\n facility. Athabasca will conduct a mid-year review of its 2013 capital\n budget and production guidance, assessing well performance, commodity\n prices and corporate events.\n\n\nLight Oil Division\n\n\nThe Kaybob West and East production facilities are operational and the\n Saxon facility is currently being commissioned, enabling Athabasca to\n achieve a significant corporate milestone by exiting 2012 with 10,000\n to 11,000 boe/d. It currently produces in excess of 10,000 boe/d with\n more than 5,000 barrels per day of oil and condensate.\n\n\nAthabasca plans to invest $236 million in 2013, as the Company advances\n the development of its Light Oil fairway. The Company has alloca...