Athabasca Oil Corporation Closes $265 Million Leismer Infrastructure Transaction

CALGARY, Alberta, Jan. 15, 2019 (GLOBE NEWSWIRE) — Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or the “Company”) has closed the previously announced Leismer Infrastructure Transaction with Enbridge Inc. for $265 million cash consideration. Transaction proceeds are approximately 50% of Athabasca’s market capitalization and significantly bolster the Company’s liquidity, reduce net debt and improve financial resiliency. Leismer’s cost structure remains competitive with other top tier oil sands projects with a US$43 WTI operating break-even price (assuming a US$18 WCS differential).

Current funding capacity is now approximately $550 million ($325 million cash and cash equivalents, $135 million available credit facilities and $90 million Duvernay capital carry). The Company’s banking syndicate has reaffirmed its $120 million reserve based credit facility which remains undrawn. Existing term debt is in place until 2022 with no maintenance covenants. Future use of the transaction proceeds may include share buy backs, debt reduction or growth initiatives.

Athabasca has taken strategic steps over the last few years to position the Company with competitive Light Oil and Thermal Oil assets that have exceptional opportunities to generate free cash flow. The Leismer Infrastructure Transaction coupled with a disciplined 2019 capital program and enhanced cost structure will allow the Company to remain resilient through a challenging macro environment. The Company’s long reserve life assets underpin significant value for shareholders. Athabasca offers investors excellent exposure to improving oil prices with a strong balance sheet and funds flow sensitivity of C$80 million for each incremental US$5/bbl increase in WTI.

About Athabasca Oil Corporation
Athabasca Oil Corporation is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. Situated in Alberta’s Western Canadian Sedimentary Basin, the Company has amassed a significant land base of extensive, high quality resources. Athabasca’s common shares trade on the TSX under the symbol “ATH”. For more information, visit www.atha.com.