Athabasca Oil Company publicizes new suspension stone

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 to the Firm’s unrestricted money steadiness which is predicted 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 way of processing charges and leveraging present quantity commitments underneath Athabasca’s transportation agreements.

Bearing in mind the 2 transactions, Hangingstone’s value construction is predicted to be diminished 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 important differentials in keeping with WCS), together with these transactions.

About Athabasca Oil Company

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

For extra info please contact:
Matthew taylor
Monetary director
1-403-817-9104
[email protected]

Discover to readers:

This press launch accommodates forward-looking info that entails varied dangers, uncertainties and different elements. All info apart from statements of historic reality is forward-looking info. The usage of any of the phrases “anticipate”, “plan”, “anticipate”, “proceed”, “estimate”, “count on”, “might”, “will”, “undertaking”, “goal” , “Ought to”, “imagine”, “predict”, “pursue”, “potential”, “see” and “ponder” and related expressions are supposed to establish forward-looking info. Ahead-looking info shouldn’t be historic reality, however slightly is predicated on the corporate’s present plans, goals, objectives, methods, estimates, assumptions and projections relating to the {industry}, enterprise and future working and monetary outcomes of the corporate. This info entails dangers, uncertainties and different recognized and unknown elements which can trigger precise outcomes or occasions to vary materially from these anticipated on this forward-looking info. No assurance might be provided that these expectations will show to be right and the forward-looking info included on this press launch shouldn’t be improperly relied upon. This info 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 a press release is made or to replicate the prevalence of unexpected occasions. Specifically, this press launch accommodates forward-looking info referring to, however not restricted to, the next: the Firm’s outlook for 2021; anticipated liquidity; anticipated value financial savings from the Hangingstone highway terminal; and different questions.

With regard to the forward-looking info contained on this press launch, assumptions have been made relating to, amongst different issues: commodity costs; the regulatory framework governing royalties, taxes and environmental issues within the jurisdictions through which the Firm operates and can function and the consequences that this regulatory framework may have on the Firm, together with on the monetary place and outcomes of operations of the Firm. Society; the monetary and operational flexibility of the corporate; the monetary viability of the enterprise; Athabasca’s money movement clearing worth; the corporate’s capacity to acquire certified personnel and tools in a well timed and price 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 capacity to acquire financing on acceptable phrases; working prices; the compliance of the counterparties with the circumstances of the contractual agreements; the influence of rising competitors on a world scale; danger of assortment of unpaid accounts receivable from third events.

Precise outcomes may differ materially from these forecast on this forward-looking info because of the danger elements set out within the Firm’s Annual Info Type (“Annual Info Type”) dated March 3, 2021 and the MD&A dated Might 4, 2021, out there on SEDAR at www.sedar.com, together with, however not restricted to: weak spot within the oil and fuel {industry}; exploration, growth and manufacturing dangers; costs, markets and advertising; market circumstances; continued influence of the COVID-19 pandemic; local weather change and the danger of carbon pricing; the regulatory atmosphere and adjustments in relevant legislation; assortment and remedy amenities, pipeline networks and railways; legal guidelines and rules referring to the atmosphere; political uncertainty; state of monetary markets; adjustments in demand for oil and fuel merchandise; royalty regimes; alternate charges and rates of interest; blanket; operational dependence; working prices; the dangers of the undertaking; monetary insurance coverage; diluent provide; third social gathering credit score danger; indigenous claims; dependence on workers and key operators; earnings tax; cyber safety; Hydraulic fracking; legal responsibility administration; seasonality and climate circumstances; surprising occasions; inner controls; Insurance coverage; litigation; competitors; chain of possession and expiration of licenses and leases; confidentiality breaches; new industry-related actions or new geographic areas; and the dangers related to our debt and securities.

Oil and fuel info

The working break-even level displays the estimated worth 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 influence of adjustments in WCS oil costs on the working revenue of an asset and will have an effect on future funding selections. Break-even economic system primarily based on manufacturing forecast for 2021 and pricing assumptions 0.79FX, -1% C5 diff and C $ 2.50 AECO.

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