Athabasca Oil Provides Operations Update, 2020 Budget Guidance and Results of Special Shareholders Meeting

CALGARY, Alberta, Jan. 08, 2020 (GLOBE NEWSWIRE) -- Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or “the Company”) demonstrated strong operational results at the end of 2019 and has approved a 2020 capital budget focused on sustaining annual production within forecasted funds flow.

Year-end 2019 Operations Update

• Production – Annual average of ~36,200 boe/d, in line with prior guidance of 36,000 boe/d. Q4 2019 production averaged ~36,400 boe/d.
• Leismer Update – December production increased to ~20,100 bbl/d supported by the five-well sustaining pad at L7 that was brought on production in Q4 2019.
• Light Oil Update – At Placid, completions operations commenced on two Montney multi-well pads that will be placed on stream in H1 2020. At Greater Kaybob, three drilling rigs and two frac spreads are currently in operation and are expected to remain active through H1 2020.
• Capital – Annual expenditures are in line with prior guidance of $135 million (excl. cap G&A).

2020 Budget Guidance

• Low Sustaining Capital – Expenditures of $125 million focused on resiliency by executing a program aimed at sustaining production within projected funds flow.
• Resilient Production – Production to average between 36,000 – 37,500 boe/d (88% liquids).
• Thermal Oil Activity – Expenditures of $65 million focused on Leismer including long-lead initiatives for Pad L8, a water disposal well which is expected to reduce annual non-energy operating costs by $3 million and routine pump changes at both assets. At Hangingstone, the Company will complete its first facility turnaround during the second quarter. Thermal production is expected to average between 26,000 – 27,000 bbl/d.
• Light Oil Activity – Expenditures of $60 million with activity weighted towards H1 2020. In the Montney, the Company will finish the completion and tie-in of 2 multi-well pads (10 wells). In the Duvernay, activity will include 7 drills, 13 completions and 16 tie-ins. Light Oil production is expected to average between 10,000 – 10,500 boe/d (55% liquids).
• Funds Flow – Forecasted funds flow of $125 million (US$57.50 WTI and US$17.50 Western Canadian Select “WCS” heavy differential) with upside at current spot prices.

Athabasca remains focused on increasing free cash flow by improving break-evens, strengthening its balance sheet and mitigating external risks. The Company has preserved long term optionality across a deep inventory of high-quality Thermal Oil projects and flexible Light Oil development opportunities. This balanced portfolio provides shareholders with differentiated exposure to liquids weighted production and significant long reserve life assets.