Business
Athabasca Oil Corporation Announces Closing of the Dover Transaction
CALGARY , Aug. 29, 2014 /CNW/ - Athabasca Oil Corporation (TSX: ATH) ("Athabasca" or "...
About this update from Athabasca Oil Corporation
[{"type":"text","content":"\n\n\nCALGARY, Aug. 29, 2014 /CNW/ - Athabasca Oil Corporation (TSX: ATH) (\"Athabasca\" or \"the Company\")\n announces that it has closed the sale of its 40% interest in the Dover\n oil sands project to Phoenix Energy Holdings Limited (\"Phoenix\"), a\n wholly owned subsidiary of PetroChina International Investment Limited,\n for net proceeds of $1,184 million.\n\n\nAt closing, Athabasca received a cash payment of $600 million, in\n addition to three interest bearing promissory notes (the \"Promissory\n Notes\") issued by Phoenix for the remaining $584 million. The\n Promissory Notes are unconditional and secured by irrevocable, standby\n letters of credit issued by HSBC Bank Canada and mature as follows:\n\n\n\non March 2, 2015 a cash payment of $300 million;\n\n\non August 28, 2015 a cash payment of $150 million; and\n\n\non August 29, 2016 a final cash payment of $134 million.\n\n\n\n\"Closing of the Dover transaction is an important milestone for\n Athabasca and marks the beginning of a new chapter for our Company,\"\n says Sveinung Svarte, President and CEO. \"We can now finalise our\n business strategy which will be focused on profitable production and\n reserve growth, cash flow growth, cost discipline and balance sheet\n flexibility. We intend to provide a full strategic update in early\n September including revised guidance and capital plans. The Company now\n has ample liquidity to continue development of its Duvernay and\n Hangingstone core assets and the timing of the cash payments under the\n promissory notes is aligned with our capital spending plans over the\n next couple of years.\"\n\n\nAbout Athabasca Oil Corporation\nAthabasca Oil Corporation is a Canadian energy company with a diverse\n portfolio of thermal and light oil assets. Situated in Alberta's\n Western Canadian Sedimentary Basin, the Company has amassed a\n significant land base of extensive, high quality resources. Athabasca's\n common shares trade on the TSX under the symbol \"ATH\". For more\n information, visit www.atha.com.\n\n\nReader Advisory:\n\n\nThis News Release contains forward-looking information that involves\n various risks, uncertainties and other factors. All information other\n than statements of historical fact is forward-looking information. The\n use of a words such as \"will\", \"plan\", \"intend\" and \"continue\" and\n simila...