Athabasca Oil Corporation Provides Third Quarter 2012 Results and Operational Update

Athabasca Oil Corporation Provides Third Quarter 2012 Results and Operational 
CALGARY, Oct. 31, 2012 /CNW/ - Athabasca Oil Corporation (TSX: ATH) today 
reported third quarter 2012 operational results. 
Athabasca achieved several significant milestones, delivering value to its 

    --  The Energy Resources Conservation Board approved the
        development of the Thermal Oil Division's 12,000 barrels per
        day (bbl/d) Hangingstone Project 1, and Alberta Environment and
        Sustainable Resource Development Department approved its
        construction under the Environmental Protection and Enhancement
    --  The Light Oil Division completed construction and tie-in of its
        production facility at Kaybob West, bringing total Light Oil
        production to over 3,500 barrels of oil equivalent per day
        (boe/d). Behind-pipe production sits at more than 7,000 boe/d.
        The Light Oil Division expects to achieve its year-end exit
        rate of 10,000 to 11,000 boe/d;
    --  The Light Oil Division drilled and completed its second
        horizontal Duvernay well located at Saxon (06-10-62-23W5M). The
        well is currently shut-in pending completion of the Saxon

"The Government of Alberta's approvals of Hangingstone Project 1 represent a 
significant milestone in the Company's history and a value-added event for its 
shareholders," says Sveinung Svarte, president and CEO. "Athabasca's Thermal 
Oil projects contain considerable bitumen resources, and are tracking on 
schedule and within budget."

"Furthermore, our decision, two years ago, to diversify the Company's 
exploration and development portfolio - adding the liquids-rich light oil play 
in the Western Canadian Sedimentary Basin - is reaping benefits today." Added 
Sveinung, "The Athabasca-operated Light Oil Division expects to exit the year 
with production in the range of 10,000 to 11,000 boe/d."

Athabasca has filed its financial statements and management's discussion and 
analysis (MD&A) for the three and nine month periods ended September 30, 2012. 
These documents can be retrieved electronically from Athabasca's website 
( and, later this morning, from SEDAR (

Thermal Oil Division

Hangingstone — Steam Assisted Gravity Drainage (SAGD) 
Summer activities were focused on conducting engineering and procurement 
activities. Front-end engineering and design (FEED) for Hangingstone Project 
1, a 12,000 bbl/d SAGD (or steam assisted gravity drainage) project was 
completed during Q3 2012.

Athabasca awarded a $36-million contract, to an Alberta company based near 
Calgary, for the fabrication of its production modules. The Company's in-house 
design and management teams continue to control costs by managing construction 
timelines for long-lead equipment.

Athabasca achieved a corporate milestone when the Energy Resources 
Conservation Board (ERCB) approved the development of its 12,000 bbl/d 
Hangingstone Project 1 and the Alberta Environment and Sustainable Resource 
Development Department approved the Project 1 construction under the 
Environmental Protection and Enhancement Act.

In November 2012, the Hangingstone Project 1 budget will be presented, for 
sanctioning, to Athabasca's Board of Directors.

Hangingstone Project 1 is progressing, as scheduled, and the Company is fully 
staffed for the project's execution. Project start-up is expected in Q4 2014.

The Company plans to follow the Hangingstone Project 1 with two consecutive, 
35,000 bbl/d SAGD projects, bringing the area's potential production to more 
than 80,000 bbl/d.

Dover West Carbonates — Thermal Assisted Gravity Drainage (TAGD)
Production from the Company's bitumen-rich Leduc carbonates at Dover West will 
utilize the TAGD production process. During Q2 2012, a "proof of concept" 
Field Test confirmed that Athabasca could effectively heat the reservoir and 
mobilize bitumen to a production well, paving the way to initiating the TAGD 
Pilot/Demonstration Project. Athabasca anticipates commencing the third flow 
cycle of the TAGD Field Test in November 2012.

Data obtained during previous Field Tests have enabled Athabasca to model its 
TAGD proprietary production technology, simulating the performance of a 
commercial TAGD project in the Leduc carbonates.

Work continues on the development at an innovative Heater Assembly Facility 
(HAF) which Athabasca constructed near Strathmore, Alberta. During Q3 2012, at 
the HAF, Athabasca successfully drilled a vertical well and used it to 
assemble a prototype heater for the Pilot Project's wells. Athabasca also 
drilled a horizontal well that will be used to test the pilot heater assembly.

Light Oil Division

Q3 2012 was an active period from a drilling, completions and construction 
point of view. Athabasca continued with the construction of three batteries in 
its 100%-operated Kaybob West, Kayob East and Saxon areas.

Athabasca's facilities were designed to deliver a processing capacity of up to 
36,000 bbl/d of oil production and 43 mmcf/d of gas production by year-end. 
During Q1 2013, the Company plans to extend the Simonette-Kaybob West trunk 
pipeline into the Kaybob East and Placid areas.

In early October 2012, Athabasca commissioned the Kaybob West Battery, 
bringing total Light Oil production to over 3,500 boe/d. Behind-pipe 
production is currently estimated at greater than 7,000 boe/d.

The Kaybob East battery will be commissioned in late November, and the Saxon 
battery in early December, enabling Athabasca to achieve its year-end guidance 
of between 10,000 to 11,000 boe/d.

During Q3, Athabasca rig released eight horizontal wells — targeting 
unconventional reservoirs in the Montney and Duvernay formations — and 
completed eleven horizontal wells. All of the wells were successful and have 
met or exceeded the Company's type curve.

Athabasca has drilled and completed its second horizontal Duvernay well 
located at Saxon (06-10-62-23 W5M). The 06-10 well was shut-in to allow 
absorption of the load fluid by the under-saturated formation and to enhance 
production performance. The well will be put on production when the Saxon 
battery is commissioned in December.

Athabasca expects to achieve its year-end exit rate of 10,000 to 11,000 boe/d.

Athabasca is a dynamic, Canadian company focused on the development of oil 
resource plays in Alberta, Canada. The Company has accumulated an extensive, 
high quality resource base suitable for the extraction of thermal crude oil 
(bitumen) and light oil. Well financed and well endowed with quality assets 
and talented people, Athabasca is poised to become a major Canadian oil 
producer. It aspires to produce more than 200,000 boe/d by 2020, comprised of 
a 50/50 weighting of thermal and light oil. Athabasca is traded on the TSX 
under the symbol ATH.

Conference Call and Webcast Today October 31, 2012 9:00 am Mountain Time 
(11:00 am Eastern Time)

A conference call and webcast to discuss the third quarter will be held for 
the investment community and media on October 31, 2012 at 9:00 a.m. MT (11:00 
a.m. ET). To participate, please dial 888-231-8191 (toll-free in North 
America) or 647-427-7450 approximately 15 minutes prior to the conference 
call. An archived recording of the call will be available from approximately 
1:00 pm ET on October 31 until midnight on November 14, 2012 by dialing 
855-859-2056 (toll-free in North America) or 416-849-0833 and entering 
conference password 21106173.

This conference call is being webcast and the webcast link is available via 
Athabasca's website, or via the following 
Please note this is a listen only audio webcast.

Reader Advisory:

This News Release contains forward-looking information that involves various 
risks, uncertainties and other factors. All information other than statements 
of historical fact is forward-looking information. The use of any of the words 
"anticipate," "plan," "continue," "estimate," "expect," "may," "will," 
"project," "should," "believe," "predict," "pursue" and "potential" and 
similar expressions are intended to identify forward-looking information. The 
forward-looking information is not historical fact, but rather is based on the 
Company's current plans, objectives, goals, strategies, estimates, assumptions 
and projections about the Company's industry, business and future financial 
results. This information involves known and unknown risks, uncertainties and 
other factors that may cause actual results or events to differ materially 
from those anticipated in such forward-looking information. No assurance can 
be given that these expectations will prove to be correct and such 
forward-looking information included in this News Release should not be unduly 
relied upon. This information speaks only as of the date of this News Release. 
In particular, this News Release may contain forward-looking information 
pertaining to the following: expected timing of receipt of first significant 
revenues from the Company's assets; the Company's capital expenditure 
programs; the estimated quantity of the Company's Probable and Possible 
Reserves and Contingent Resources; the Company's drilling plans; the Company's 
plans for, and results of, exploration and development activities; the 
Company's estimated future commitments; business plans; development of the 
Company's Thermal Oil Division and Conventional Oil and Gas Division projects; 
timing of facilities construction and timing of production; the use of in-situ 
recovery methods such as Steam Assisted Gravity Drainage (SAGD) and Thermal 
Assisted Gravity Drainage (TAGD) for production of recoverable bitumen, 
including the potential benefits of such methods; targeted exit rates 
production for 2012 and beyond, and long term production goals; timing of 
submission of project regulatory applications; estimated timing of first 
steaming, selection of equipment manufactures and internal sanction, as 
applicable, of the Company's projects; estimated initial and full production 
of the Company's projects; Athabasca's plans with respect to the Conventional 
Oil and Gas Divisions assets and the expected benefits to be received by 
Athabasca from such assets; expectations regarding the Company's Light Oil 
Division development areas including anticipated production levels and timing 
of receipt of significant revenues and operating results therefrom; and 
expected increase to number of staff members in 2012.

With respect to forward-looking information contained in this News Release, 
assumptions have been made regarding, among other things: the Company's 
ability to obtain qualified staff and equipment in a timely and cost-efficient 
manner; the regulatory framework governing royalties, taxes and environmental 
matters in the jurisdictions in which the Company conducts and will conduct 
its business; the applicability of technologies for the recovery and 
production of the Company's reserves and resources; future capital 
expenditures to be made by the Company; future sources of funding for the 
Company's capital programs; the Company's future debt levels; geological and 
engineering estimates in respect of the Company's reserves and resources; the 
geography of the areas in which the Company is conducting exploration and 
development activities; the impact that the agreements relating to the 
PetroChina Transaction (the "PetroChina Transaction Agreements") will have on 
the Company, including on the Company's financial condition and results of 
operations; and the Company's ability to obtain financing on acceptable terms.

Actual results could differ materially from those anticipated in this 
forward-looking information as a result of the risk factors set forth in the 
Company's most recent Annual Information Form filed on March 27, 2012 ("AIF") 
that is available on SEDAR at, including, but not limited to: 
fluctuations in market prices for crude oil, natural gas and bitumen blend; 
general economic, market and business conditions; dependence on Phoenix Energy 
Holdings Limited (" Phoenix") as the joint venture participant in the Dover 
oil sands projects; variations in foreign exchange and interest rates; factors 
affecting potential profitability; factors affecting funding, including the 
development of new business opportunities, the availability of financing, 
developments in technology, the priorities of the Company and of its current 
and future joint venture partners and general economic conditions; 
uncertainties inherent in estimating quantities of reserves and resources; 
uncertainties inherent in SAGD and TAGD; the potential impact of the exercise 
of the Dover put/call options on the Company; failure to meet the conditions 
precedent to the exercise by the Company of the Dover put option, including 
failure to obtain necessary regulatory approvals for completion of the Dover 
put/call option transaction by the second quarter of 2013 or at all; failure 
to obtain regulatory approval for the Dover West Sands project, Dover West 
TAGD Pilot project or other oil sands projects when anticipated or at all; 
failure to meet development schedules and potential cost overruns; increases 
in operating costs making projects uneconomic; the effect of diluent and 
natural gas supply constraints and increases in the costs thereof; gas over 
bitumen issues affecting operational results; the potential for adverse 
consequences in the event that the Company defaults under certain of the 
PetroChina Transaction Agreements; environmental risks and hazards and the 
cost of compliance with environmental regulations; failure to obtain or retain 
key personnel; the substantial capital requirements of the Company's projects; 
the need to obtain regulatory approvals and maintain compliance with 
regulatory requirements; changes to royalty regimes; political risks; failure 
to accurately estimate abandonment and reclamation costs; risks inherent in 
the Company's operations, including those related to exploration, development 
and production of oil sands, crude oil and natural gas reserves and resources, 
including the production of oil sands reserves and resources using SAGD and 
TAGD and the production of crude oil and natural gas using multi-stage 
fracture and other stimulation technologies; the potential for management 
estimates and assumptions to be inaccurate; reliance on third party 
infrastructure for project facilities; failure by counterparties (including 
without limitation Phoenix) to comply with contractual arrangements between 
the Company and such counterparties; the potential lack of available drilling 
equipment and limitations on access to the Company's assets; Aboriginal 
claims; seasonality; hedging risks; insurance risks; claims made in respect of 
the Company's operations, properties or assets; the potential for adverse 
consequences as a result of the change of control provisions in the PetroChina 
Transaction Agreements; competition for, among other things, capital, the 
acquisition of reserves and resources, export pipeline capacity and skilled 
personnel; the failure of the Company or the holder of certain licenses or 
leases to meet specific requirements of such licenses or leases; risk of 
reassessments of the Company's tax filings by taxation authorities; risks 
arising from future acquisition and joint venture activities; risks that joint 
venture arrangements will not perform as expected; volatility in the market 
price of the common shares; and the effect that the issuance of additional 
securities by the Company could have on the market price of the common shares. 
In addition, information and statements in this News Release relating to 
"reserves" and "resources" are deemed to be forward-looking information, as 
they involve the implied assessment, based on certain estimates and 
assumptions, that the reserves and resources described exist in the quantities 
predicted or estimated, and that the reserves and resources described can be 
profitably produced in the future. The assumptions relating to the Company's 
Hangingstone reserves and resources are contained in the reports of GLJ 
Petroleum Consultants Ltd. and DeGolyer and MacNaughton, each dated effective 
April 30, 2012. See the Company's News Release dated July 26, 2012 available 
on SEDAR. For additional information regarding the specific contingencies 
which prevent the classification of the Company's Contingent Resources as 
Reserves see "Independent Reserve and Resource Evaluations - Contingent 
Resources Estimates" in the AIF. The forward-looking statements included in 
this News Release are expressly qualified by this cautionary statement. 
Athabasca does not undertake any obligation to publicly update or revise any 
forward-looking statements except as required by applicable securities laws.

Oil and Gas Information:
"BOEs" may be misleading, particularly if used in isolation. A BOE 
conversion ratio of six thousand cubic feet of natural gas to one barrel of 
oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion 
method primarily applicable at the burner tip and does not represent a value 
equivalency at the wellhead.

Test Results and Initial Production Rates:
A pressure transient analysis or well-test interpretation has not been carried 
out and thus the test results provided in this News Release should be 
considered to be preliminary until such analysis or interpretation has been 
completed. Test results and initial production rates disclosed herein may not 
necessarily be indicative of long term performance or of ultimate recovery.

Media Heather Douglas Vice President, Communications & External 
Affairs (403) 532-7408

Financial Community Andre De Leebeeck Director, Partner & Investor Relations 
(403) 817-8048  Tracy Robinson Manager, Investor 
Relations (403) 532-7446  

SOURCE: Athabasca Oil Corporation

To view this news release in HTML formatting, please use the following URL:

CO: Athabasca Oil Corporation
ST: Alberta

-0- Oct/31/2012 10:00 GMT

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