Athabasca Oil Corporation Provides 2021 Budget Guidance and Announces Bank Facility Renewal along with an Increase in Unsecured Credit Facility Capacity - Seite 2

Financial Position

Ample Liquidity. The Company is well positioned to navigate the current challenging environment with estimated liquidity of approximately $170 million at year-end 2020 (excluding $150.9 million of restricted cash as at September 30, 2020).

Bank Facility Renewal. The Company’s banking syndicate has renewed the reserve-based facility until May 31, 2021. The credit facility remains unchanged at $39.9 million which reflects current outstanding letters of credit for long term transportation commitments and is secured by the Company’s restricted cash balances.

Increased Unsecured Letter of Credit Facility. The Company also increased its unsecured letter of credit facility with ATB Capital Markets by $10 million to $40 million which is supported by a performance security guarantee from Export Development Canada.

Long Term Debt. The Company has US$450 million in second lien debt with a maturity of February 24, 2022. The refinancing of Athabasca’s long term debt remains a key 2021 priority.

Risk Management and Market Access

Athabasca protects a base level of capital activity through its risk management program. The hedge program targets up to 50% of corporate production.

Hedging Summary1
			Q1 2021		Q2 2021		Q3 2021		Q4 2021
WCS Differentials	bbl/d		18,000		7,500		7,500		-
Average Price	US$		$14.44		$11.98		$11.98		-
WTI2	US$		11,000		-		-		-
Average Price3	bbl/d		$45.44		-		-		-
Notes:
1. Details of hedging contracts provided in the Company's Q3 2020 MD&A.