Athabasca Oil Corporation Sanctions Hangingstone SAGD Project, Updates on Light Oil Activity and Announces Executive

Athabasca Oil Corporation Sanctions Hangingstone SAGD Project, Updates on 
Light Oil Activity and Announces Executive Appointments 
CALGARY, Nov. 28, 2012 /CNW/ - Athabasca Oil Corporation (TSX: ATH) announces 
the sanction of its Hangingstone 1 SAGD Project and reaffirms that its Light 
Oil Division is on track to meet its year-end production target of 10,000 to 
11,000 barrels of oil equivalent (boe/d). In response to achieving these 
significant corporate milestones, the Board of Directors announces executive 
appointments, effective immediately, to bolster the Company's transformation 
to an exploration and production (E&P) company. 
Current highlights include: 


    --  The Board of Directors has sanctioned the $536 million
        development budget for the 12,000 barrels per day (bbl/d)
        Hangingstone Project 1, comprised of a central processing
        facility and twenty SAGD well pairs on four well pads. The
        Board of Directors has also sanctioned $27 million for the
        construction of supporting infrastructure;
    --  An evolution in hydraulic fracturing methodology has yielded
        enhanced results in the Company's third Duvernay well,
        02-34-62-20W5M, at Kaybob West. The 02-34 well flowed at a
        final test rate (after 109 hrs) of > 6 million cubic feet
        (mmcf/d) plus 900 bbl/d of >50° API condensate, at a steady
        flowing pressure of 3,000 pounds per square inch gauge (psig);
    --  Commissioning of the Company's Kaybob East and Saxon facilities
        is scheduled for a mid-December start-up, enabling achievement
        of the 2012 exit rate guidance, and;
    --  The Board of Directors approves executive appointments.

The Board of Directors has sanctioned the $536 million development budget for 
the Hangingstone Project 1, comprised of a 12,000 bbl/d central processing 
facility and four well pads with five SAGD well pairs per pad. Athabasca 
expects to develop this 12,000 bbl/d thermal oil project at a cost of $44,700 
per barrel, exclusive of the $27 million of supporting infrastructure.

The drilling of SAGD well pairs is planned to commence, in mid-2013, at the 
Hangingstone Project 1, with the facility commissioning and start-up scheduled 
for Q4 2014. First steam is anticipated before year-end 2014, followed by 
first production in early 2015.

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

The Company continues to advance its Montney and Duvernay development, in 
Alberta's liquids-rich Deep Basin. Montney well results continue to meet or 
exceed the Company's expectations. Athabasca's Duvernay fairway consists of 
more than 300 high-graded net sections with significant potential.

The Light Oil Division is currently producing approximately 4,000 boe/d. 
Commissioning of the Kaybob East and Saxon facilities, by mid-December, should 
enable Athabasca to achieve its year-end exit rate guidance of 10,000 to 
11,000 boe/d.

"I am very pleased with the production test results, and with the rapid and 
extensive build-up of production infrastructure in the Kaybob and Saxon 
areas," said Sveinung Svarte, chief executive officer. "I am particularly 
encouraged by the test results of our third Duvernay well which had strong 
flow rates and exhibited steady formation pressures towards the end of the 
test period. Athabasca, like other E&P operators, sees tremendous Duvernay 
potential in this part of the Deep Basin."

The Company's learning curve, understanding the fracture characteristics of 
the Duvernay, has been steep. An evolution in our application of hydraulic 
fracturing techniques has yielded strong production results; Athabasca's third 
Duvernay well, 02-34-62-20W5M at Kaybob West, flowed at a final test rate 
(after 109 hrs) of > 6 mmcf/d plus 900 bbl/d of >50° API condensate, at a 
steady flowing pressure of 3,000 psig. The 02-34 well will commence production 
in early December, with the completion of a pipeline tie-in to the Kaybob West 
Facility.

Athabasca's second Duvernay well, 06-10-62-23W5M, has been fractured and flow 
tested on two separate occasions. Following its initial completion, the well 
sat for a 40-day 'soak' period, enabling absorption of the load fluid by the 
under-saturated formation and enhancing production performance. The second and 
most recent flow test yielded a final test rate (after 44 hrs) of 5 mmcf/d 
plus 450 bbl/d of >50° API condensate, at a flowing pressure > 2,500 
psig.The 06-10 well will be placed on production in mid-December when the 
Saxon facility is commissioned.

In response to achieving these significant corporate milestones, and in order 
to position the Company for growth in the Thermal and Light Oil divisions, the 
Board of Directors announces several executive appointments, effective 
immediately. Bryan Gould, M.A.Sc., P.Eng., Athabasca's vice-president, 
corporate development, is promoted to the position of president, reporting to 
Sveinung Svarte, who will remain chief executive officer. Bryan Gould will be 
in charge of all operations, operating assets and technical functions.

Ian Atkinson, M.Sc., P.Eng., Athabasca's vice-president, geoscience & 
development, is promoted to the position of senior vice-president, thermal 
oil. Rob Bowie, MBA, Athabasca's director, portfolio management, is promoted 
to vice-president, corporate development. Andre De Leebeeck, B.A.Sc., P.Eng., 
director, investor & partner relations, is promoted to vice-president, 
investor relations.

In response to the Corporation's rapid growth and corresponding increase in 
work load, the role of chief financial officer will be divided into two 
positions: vice-president, corporate services and chief financial officer. The 
current CFO, Rob Harding, CMA, MBA, will assume the role of vice-president, 
corporate services. A search is underway to fill the revised role and 
responsibilities of chief financial officer. Mr. Harding will remain CFO until 
the new candidate has been recruited.

Athabasca also announces the addition of Rob Broen, B.Sc.Eng., P.Eng., to its 
executive management team. Mr. Broen joins the Company as senior vice 
president, light oil. Bringing over 20 years of exploration and production 
expertise to Athabasca, Mr. Broen recently led a 120,000 boe/d North American 
shale gas portfolio (Montney, Duvernay, Marcellus and Eagle Ford) for an 
international exploration and production company.

"We are pleased to welcome Rob to the team," said Sveinung Svarte, chief 
executive officer. "We have witnessed his success in his previous positions 
and look forward to seeing him help develop the Light Oil Division's world 
class assets." Added Svarte, "The recent management changes ensure that the 
organization is well prepared for the challenges ahead, as the Company exits 
2012 as a production company."

About Athabasca Oil Corporation
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."

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" "expect" "may" "will" "should" "believe" 
"predict" 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 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 Light Oil Division projects; timing of 
facilities construction and timing of production; the use of in-situ recovery 
methods such as Steam Assisted Gravity Drainage (SAGD) for production of 
recoverable bitumen; targeted exit rates production for 2012 and long term 
production goals; estimated timing of first steaming, estimated initial and 
full production of the Company's projects; Athabasca's plans with respect to 
the Light Oil 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 
operating results therefrom.

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; the geography of 
the areas in which the Company is conducting exploration and development 
activities; 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 www.sedar.com, including, but not limited to: 
fluctuations in market prices for crude oil, natural gas and bitumen blend; 
general economic, market and business conditions; factors affecting potential 
profitability; factors affecting funding, 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 SAGD; failure to meet development schedules and 
potential cost overruns; increases in operating costs making projects 
uneconomic; 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; 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 crude oil and natural gas using multi-stage fracture and other 
stimulation technologies; failure by counterparties 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; claims made in respect of the 
Company's operations, properties or assets; competition for, among other 
things, capital, 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. 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 hdouglas@atha.com

Financial Community Andre De Leebeeck Vice President, Investor Relations (403) 
817-8048 adeleebeeck@atha.com  Tracy Robinson Manager, Investor Relations 
(403) 532-7446 trobinson@atha.com  

SOURCE: Athabasca Oil Corporation

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/28/c4087.html

CO: Athabasca Oil Corporation
ST: Alberta
NI: OIL 2575 WNEWS FIELD 

-0- Nov/28/2012 11:00 GMT


 
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