Athabasca Oil Corporation Advances the Development of its Thermal and Light Oil Assets and Reports First Quarter 2013 Results

Athabasca Oil Corporation Advances the Development of its Thermal and Light 
Oil Assets and Reports First Quarter 2013 Results 
CALGARY, April 30, 2013 /CNW/ - Athabasca Oil Corporation (TSX: ATH) is 
pleased to report its first quarter 2013 results. 
Highlights include: 

    --  In the Thermal Oil Division, construction at Hangingstone
        Project 1 is currently proceeding as planned. Appraisal
        programs to further delineate bitumen resources at Hangingstone
        Project 2 and Dover West Sands continued along with a third
        production phase of the Thermal Assisted Gravity Drainage
        ("TAGD") Leduc Pilot and Demonstration Project at Dover West
    --  The Light Oil Division continued further development of its
        production capability and commissioning of infrastructure
        assets in the liquids-rich Alberta Deep Basin. Production in
        the first quarter averaged 6,100 barrels of oil equivalent per
        day (boe/d), which was impacted by unexpected third-party
        transmission and plant outages.

Athabasca has filed its financial statements and management's discussion and 
analysis for the three month period ended March 31, 2013. These documents can 
be retrieved electronically on the Company's website and later 
this morning from SEDAR

Thermal Oil Division

Athabasca continued to advance the development of its various thermal oil 
assets during the first quarter of 2013.

At Hangingstone Project 1, the Company's wholly-owned 12,000 barrels per day 
(bbl/d) steam assisted gravity drainage ("SAGD") project near Fort McMurray, 
66 percent of the earthworks required for the construction of the central 
processing facility and the SAGD well pads has been completed. Detailed 
engineering for the project is now 83 percent complete. Athabasca anticipates 
commencing drilling of the SAGD well pairs by mid-year 2013.

During the first quarter of 2013, Athabasca drilled 23 appraisal wells at 
Hangingstone Project 2 to further delineate bitumen resources. In the second 
quarter of 2013, the Company anticipates submitting regulatory applications 
for Hangingstone Projects 2 and 3, two consecutive SAGD projects which are 
expected to increase overall production to greater than 80,000 bbl/d.

During the first quarter of 2013, Athabasca entered into an agreement with 
Enbridge Pipelines (Athabasca) Inc. for the transportation and terminaling of 
diluted bitumen ("dilbit"), which will be produced from Hangingstone Project 
1. The new 16-inch-diameter, 50-kilometre-long pipeline is expected to be in 
service during the latter half of 2015, concurrent with the planned production 
ramp-up of Hangingstone Project 1. The pipeline is expected to have sufficient 
capacity to transport the Company's additional 40,000 bbl/d of dilbit which is 
anticipated to be produced from Hangingstone Project 2.

At Dover West, the Company drilled and cased three delineation wells to 
further evaluate bitumen resources in the oil sands reservoirs. The drilling 
results further validate the resources required to develop the initial 12,000 
bbl/d SAGD Dover West Sands Project 1.

Utilizing the innovative TAGD technology, Athabasca successfully completed its 
third production phase in the Dover West Leduc carbonates. The Company 
concludes that it is feasible to produce bitumen through gravity drainage at 
temperatures considerably lower than those used in SAGD operations.

On April 23, 2013, a regulatory hearing commenced for the Dover Commercial 
Project, a 250,000 bbl/d SAGD Joint Venture ("JV") project. Closing arguments 
were presented April 29, 2013. Regulatory approval of this project is expected 
later this year which would trigger rights under the Company's Put/Call Option 

Light Oil Division

In the first quarter of 2013, Athabasca advanced the development of its light 
oil assets in the Kaybob area, and continued exploration activities on its 
newest light oil assets in the Caribou and Muskwa areas of northwestern 
Alberta. Athabasca's wholly-owned pipeline interconnect from Kaybob East to 
Kaybob West was commissioned in early April, allowing previously curtailed 
production and additional new wells on stream.

During the first quarter of 2013, production averaged 6,100 boe/d and was 
comprised of 56 percent liquids. As previously reported, Athabasca's daily 
production was curtailed during the first quarter of 2013 by constraints in a 
third-party transmission line in the Kaybob East area and significant service 
interruptions at the Keyera Simonette Gas Plant.

Keyera completed repairs to the sulphur facilities at its Simonette gas plant 
in early April. However, the plant has continued to be restricted with respect 
to sour gas processing and liquids handling. This has reduced its ability to 
handle higher than expected liquid content in the gas stream feedstock from 
Athabasca's liquids-rich Montney and Duvernay formations. Athabasca has been 
working closely with Keyera to resolve the situation. Keyera recently made 
several upgrades at its Simonette plant and plans additional modifications 
throughout the second and third quarter, including during its scheduled 
shut-down in September 2013.

Athabasca continues to estimate maximum production capability of greater than 
11,000 boe/d, based on new well tests and production performance data. 
Athabasca may face near-term production constraints until the planned 
modifications at the Simonette plant have been completed and the plant is 
better able to handle the composition of the natural gas currently being 
delivered. As a result of these interruptions, Athabasca's production in April 
has ranged from 300 boe/d to 9,800 boe/d with an average production rate of 
approximately 5,800 boe/d. Athabasca expects continued production variability 
until the above mentioned issues are resolved.

During the first quarter of 2013, Athabasca drilled 16 horizontal development 
wells in the Kaybob area, targeting the Montney Formation. An additional three 
Montney horizontal wells are scheduled to be drilled in the second quarter of 
2013. A total of 18 Montney horizontal wells were completed during the first 
quarter of 2013, with an additional seven wells scheduled for completion 
during the second quarter of 2013. All of the Montney wells from the winter 
development drilling program are expected to be tied-in and producing by the 
end of the second quarter of 2013. One successful water injection well was 
drilled and completed during the first quarter of 2013 in the Kaybob East area.

Athabasca continues to be encouraged by the strong performance of its three 
Duvernay horizontal wells. The Company is also encouraged by Duvernay 
production results reported by other industry operators. Athabasca holds 
350,000 high-graded acres (net) of liquids-rich Duvernay potential, including 
200,000 acres (net) near Kaybob which contain greater than 20 meters of net 
pay and lie in the heart of the Duvernay Fairway.

Athabasca believes it has more than 2,000 potential drilling locations in the 
Montney and Duvernay formations. The Company intends to conduct a mid-year 
review of its 2013 capital budget directed towards these opportunities.

Conference Call and AGM, April 30, 2013

7:30 am Mountain Time (9:30 am Eastern Time)

A conference call to discuss the first quarter will be held for the investment 
community and media on April 30, 2013 at 7:30 a.m. MT (9:30 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 10:30 a.m. 
ET on April 30 until midnight on May 14, 2013 by dialing 855-859-2056 
(toll-free in North America) or 416-849-0833 and entering conference password 

An audio webcast of the conference call will also be available via Athabasca's 
website, or via the following URL:

Athabasca's Annual General Meeting of Shareholders will be held the same day 
in Calgary at The Metropolitan Centre, Metropolitan Ballroom, 333 - 4th Avenue 
SW at 10:00 am MT. William Gallacher, chairman of the board, will conduct the 
business of the meeting and Sveinung Svarte, chief executive officer, will 
provide an overview of 2012 and discuss the company's future outlook.

To view the video-stream webcast and presentation slides please visit 
Athabasca's website, or the link below:

About Athabasca Oil Corporation

Athabasca is a dynamic, Canadian exploration and production 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. Athabasca is poised 
to become a major Canadian oil producer. 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," "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; production capabilities of the Company's wells; 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; the timing of resolution of third party facility 
constraints; the 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 the first half of 2013 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 2013.

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 28, 2013 ("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; risk of 
reassessments of the Company's tax filings by taxation authorities; failure to 
satisfy certain conditions in connection with the Company's debt and credit 
facilities; 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 in 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.

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.

Media and Financial Community Andre De Leebeeck Vice President, Investor 
Relations and External Communications (403) 817-8048

Financial Community Tracy Robinson Manager, Investor Relations External 
Communications (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- Apr/30/2013 10:00 GMT

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