Athabasca Oil Company Publicizes Additional Price Reductions for Hangingstone


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CALGARY, Alberta, Might 10, 2021 (GLOBE NEWSWIRE) – Athabasca Oil Company (TSX: ATH) (“Athabasca” or the “Firm”) is happy to announce that it has signed an Amending Transportation and Storage Companies Settlement Hangingstone (“TSSA”), leading to an early redemption of $ 44 million of restricted money and a discount of roughly $ 5 million in annual tolls. The amended TSSA reduces Hangingstone’s dilbit monetary ensures from roughly $ 44 million to roughly $ 27 million. The discount in monetary ensures freed up money allotted to the corporate’s steadiness sheet which was used concurrently to finance the modification prepayment. There isn’t a change within the Firm’s unrestricted money steadiness which is anticipated to lower from $ 141 million at March 31, 2021 to roughly $ 210 million at 12 months finish (US $ 60 WTI spreads and US $ 11 WCS). The transaction is efficient from Might 7, 2021 and the transaction is now closed.

As beforehand introduced with the corporate’s first quarter outcomes, Athabasca has entered right into a enterprise settlement with a number one advertising firm to construct a toll-free freeway terminal for Athabasca. Operations are slated to start in July with as much as 5,000 bpd of third-party trucking capability. The extra volumes are anticipated to generate as much as $ 5 million in annual financial savings by processing charges and leveraging current quantity commitments underneath Athabasca’s transportation agreements.

Making an allowance for the 2 transactions, Hangingstone’s value construction is anticipated to be lowered by as much as $ 10 million per 12 months. Hangingstone has now improved its resilience and profitability with an estimated working break-even level of US $ 31.50 / bbl WCS. The corporate’s working break-even level is roughly US $ 43 / bbl WTI (US $ 11 vital differentials in line with WCS), together with these transactions.

About Athabasca Oil Company

Athabasca Oil Company is a Canadian power firm with a method targeted on the event of thermal and lightweight petroleum property. Situated within the western Canadian sedimentary basin of Alberta, the corporate has amassed an unlimited land of in depth and high-quality assets. The frequent shares of Athabasca commerce on the TSX underneath the image “ATH”. For extra data go to www.atha.com.

For extra data, please contact: Matthew Taylor, Chief Monetary Officer, 1-403-817-9104[email protected]

Discover to readers:

This press launch incorporates forward-looking data that entails varied dangers, uncertainties and different components. All data aside from statements of historic reality is forward-looking data. Using any of the phrases “anticipate”, “plan”, “anticipate”, “proceed”, “estimate”, “anticipate”, “might”, “will”, “undertaking”, “goal” , “Ought to”, “consider”, “predict”, “pursue”, “potential”, “see” and “ponder” and comparable expressions are meant to establish forward-looking data. Ahead-looking data isn’t historic reality, however somewhat is predicated on the corporate’s present plans, goals, objectives, methods, estimates, assumptions and projections concerning the {industry}, enterprise and future working and monetary outcomes of the corporate. This data entails recognized and unknown dangers, uncertainties and different components which can trigger precise outcomes or occasions to vary materially from these anticipated on this forward-looking data. No assurance may be provided that these expectations will show to be right and the forward-looking data included on this press launch shouldn’t be relied on unduly. This data speaks solely as of the date of this press launch and, besides as required by relevant securities legal guidelines, the corporate doesn’t undertake to replace any forward-looking assertion to replicate occasions or circumstances. after the date on which such an announcement is made or to replicate the incidence of unexpected occasions. Particularly, this press launch incorporates forward-looking data regarding, however not restricted to, the next: the Firm’s outlook for 2021; anticipated liquidity; anticipated value financial savings from the Hangingstone street terminal; and different questions.

With regard to the forward-looking data contained on this press launch, assumptions have been made regarding, amongst others: the costs of uncooked supplies; the regulatory framework governing royalties, taxes and environmental issues within the jurisdictions wherein the Firm operates and can function and the consequences that such regulatory framework could have on the Firm, together with on the monetary situation and outcomes of operations of the society; the monetary and operational flexibility of the corporate; the monetary viability of the enterprise; Athabasca’s money stream clearing value; the corporate’s capability to acquire certified personnel and tools in a well timed and value efficient method; the applicability of applied sciences for the restoration and manufacturing of the corporate’s reserves and assets; the corporate’s future debt ranges; future manufacturing ranges; the corporate’s capability to acquire financing on acceptable phrases; working prices; the compliance of the counterparties with the situations of the contractual agreements; the affect of rising competitors on a world scale; threat of assortment of unpaid claims from third events

Precise outcomes might differ materially from these forecast on this forward-looking data as a result of threat components set out within the Firm’s Annual Data Kind (“Annual Data Kind”) dated March 3, 2021 and the MD&A dated Might 4, 2021, obtainable on SEDAR at www.sedar.com, together with, however not restricted to: the weak point of the oil and gasoline {industry}; exploration, growth and manufacturing dangers; costs, markets and advertising; market situations; continued affect of the COVID-19 pandemic; local weather change and the danger of carbon pricing; the regulatory surroundings and adjustments in relevant regulation; assortment and remedy amenities, pipeline networks and railways; environmental legal guidelines and laws; political uncertainty; state of economic markets; adjustments in demand for oil and gasoline merchandise; royalty regimes; change charges and rates of interest; blanket; operational dependence; working prices; the dangers of the undertaking; monetary insurance coverage; diluent provide; third celebration credit score threat; indigenous claims; dependence on workers and key operators; earnings tax; cyber safety; Hydraulic fracking; legal responsibility administration; seasonality and climate situations; surprising occasions; inner controls; Insurance coverage; litigation; competitors; chain of possession and expiration of licenses and leases; breaches of confidentiality; new industry-related actions or new geographic areas; and the dangers related to our debt and securities.

Oil and gasoline data

The working break-even level displays the estimated value of WCS oil per barrel required to generate working earnings on the asset stage of C $ 0. The breakeven level is used to evaluate the affect of adjustments in WCS oil costs on the working revenue of an asset and will have an effect on future funding selections. Breakeven saving primarily based on manufacturing forecast for 2021 and pricing assumptions 0.79FX, -1% C5 diff and C $ 2.50 AECO.

Supply: Athabasca Oil Company

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