Athabasca Oil Corporation Reports Second Quarter 2013 Results

CALGARY, July 31, 2013 /CNW/ - Athabasca Oil Corporation (TSX: ATH) 
("Athabasca" or "the Company") is pleased to report its second quarter 2013 

    --  Capital expenditures during the second quarter totalled $143
        million, $92 million in the Thermal Oil Division and $48
        million in the Light Oil Division and the remainder for
        corporate assets;
    --  Production in the second quarter averaged 7,258 barrels of oil
        equivalent per day ("boe/d"), with an average production of
        8,552 boe/d for June;
    --  Average netback during the second quarter was $36.55 per barrel
        of oil equivalent;
    --  In the Thermal Oil Division, construction at Hangingstone
        ("HS") Project 1 continued as planned.

Athabasca has filed its financial statements and management's discussion and 
analysis for the three and six month periods ended June 30, 2013. These 
documents are available on the Company's website and later this 
morning from SEDAR

Thermal Oil Division
The HS Project 1, a 12,000 barrel per day ("bbl/d") SAGD facility, 
construction budget remained on track with over 64% of the project costs 
committed. Engineering and procurement being over 85% complete allowed field 
construction to start. Mechanical site construction and drilling are on 
schedule for a third quarter start. In May, the regulatory application for the 
HS Expansion, a 70,000 bbl/d SAGD project, was submitted. The HS Expansion is 
planned in two phases of 40,000 bbl/d and 30,000 bbl/d respectively.

The hearing in respect of the Dover Commercial Project, in which Athabasca 
holds a 40% interest, was held from April 23 to 29, 2013. The Alberta Energy 
Regulator (formerly ERCB) panel is considering the information provided and is 
expected to provide its decision shortly. Athabasca's view is that regulatory 
approval of this project is expected later this year which would trigger 
rights under the Company's Put/Call Option Agreement.

Athabasca completed the third production cycle of the Dover West Carbonates 
TAGD test. The results of the TAGD field test have successfully met or 
exceeded all design objectives which included demonstrating the ability to 
heat the reservoir with thermal conduction and produce bitumen by gravity 
drainage from the Leduc carbonate formation.

Light Oil Division
Light Oil production averaged 7,258 boe/d (50% liquids) in the second quarter 
with an average of 8,552 boe/d in June. Since the occurrence of the March 
and April service interruptions at the Simonette gas plant Keyera has 
initiated plant modifications aimed at improved sour gas processing and liquid 
handling. Operational run-times continuously improved since early May and 
Athabasca has steadily increased its production throughout the quarter. 
Keyera will have a scheduled shutdown in September, lasting approximately 
three weeks, for planned maintenance and completion of the plant 
modifications. As a result, Athabasca's September production will be low, 
bringing its expected average production for the third quarter of 2013 into 
the range of 5,700 to 6,200 boe/d. Five Montney horizontal wells were 
completed during the quarter. All development wells from the winter drilling 
program are now tied-in.

Athabasca continues to be encouraged by the strong performance of its three 
Duvernay horizontal wells and results reported by other industry operators. 
Athabasca has initiated a formal joint venture process for its Duvernay 
holdings. Athabasca holds approximately 350,000 prospective acres (net) of 
liquids-rich Duvernay potential, including approximately 200,000 high-graded 
acres (net) near Kaybob which contain greater than 20 metres of net pay and 
lie in the heart of the Duvernay Fairway.

"Athabasca's strategy has been and continues to be growth through joint 
ventures," says Sveinung Svarte, president and CEO. "The Duvernay production 
potential is very good and full development will require significant capital 
investment. A joint venture partner would allow Athabasca to accelerate the 
development and value realization from the Duvernay."

Athabasca expects a decision from the Alberta Energy Regulator regarding the 
Dover Commercial Project in the third quarter. Once a decision has been 
received, a review of the Light Oil capital budget for the remainder of 2013 
will be undertaken.

Conference Call, July 31, 2013 7:30 am Mountain Time (9:30 am Eastern Time)

A conference call to discuss the second quarter will be held for the 
investment community and media on July 31, 2013 at 7:30 a.m. MT (9:30 a.m. 
ET). To participate, please dial 1-888-231-8191 (toll-free in North America) 
or 1-647-427-7450 approximately 15 minutes prior to the conference call. An 
archived recording of the call will be available from approximately 12:30 p.m. 
ET on July 31, 2013 until midnight on August 14, 2013 by dialing 
1-855-859-2056 (toll-free in North America) or 1-416-849-0833 and entering 
conference password 13327904.

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

About Athabasca Oil Corporation
Athabasca Oil Corporation is a dynamic, Canadian energy company with a diverse 
portfolio of thermal and light oil assets. Situated in Alberta's Western 
Canadian Sedimentary Basin, the Company has amassed a significant land base of 
extensive, high quality resources. With 10.6 billion barrels of bitumen 
resources (contingent resources, best estimate) and growing light oil 
production, Athabasca aspires to become a major oil producer. Athabasca's 
common shares trade 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", "project'", "plan", "continue", "estimate", "expect", "may", 
"would", "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: the expected timing 
of receipt of regulatory approval for the Dover Commercial Project; 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; sanctioning of 
projects; development of the Company's Thermal Oil Division and Light 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) for production of recoverable bitumen, including the potential 
benefits of such methods; estimated average production rates for the third 
quarter of 2013 and long term production goals; estimated initial and full 
production of the Company's projects; Athabasca's plans with respect to the 
Company's Light Oil Division and Thermal Oil assets and the expected 
benefits to be received by Athabasca from such assets; and 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.

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 Company's ability to successfully complete a Duvernay joint 
venture; 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; failure to satisfy certain conditions in connection with 
the Company's debt and credit facilities; 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 ; 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 Hangingstone Expansion 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 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. As the value ratio between natural gas and crude 
oil based on the current prices of natural gas and crude oil is significantly 
different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 
basis may be misleading as an indication of value.

SOURCE  Athabasca Oil Corporation 
Media and Financial Community  Andre De Leebeeck Vice President, 
Investor Relations and External Communications 1-403-817-8048 
Financial Community Tracy Robinson Manager, Investor Relations 1-403-532-7446 
To view this news release in HTML formatting, please use the following URL: 
CO: Athabasca Oil Corporation
ST: Alberta
-0- Jul/31/2013 10:00 GMT
Press spacebar to pause and continue. Press esc to stop.