Athabasca Oil Corporation Announces 2013 Year-End Results and a 32% Increase in Proved Plus Probable Reserves

Athabasca Oil Corporation Announces 2013 Year-End Results and a 32% Increase 
in Proved Plus Probable Reserves 
CALGARY, March 19, 2014 /CNW/ - Athabasca Oil Corporation ("Athabasca" or the 
"Company") (TSX: ATH) announced today its 2013 year-end financial and 
operating results and also released its 2013 year-end reserve and resource 
2013 Highlights: 

        --  gross proved plus probable reserves increased by 32%
        --  produced an average of 6,397 barrels of oil equivalent per day
            ("boe/d") comprised of 49% liquids in 2013; fourth quarter
            production averaged 6,697 boe/d, in line with guidance;
        --  completed 59% of Hangingstone Project 1, a 12,000 barrel per
            day ("bbl/d") steam assisted gravity drainage ("SAGD") project;
        --  capital expenditures totaled $762 million including $282
            million in Light Oil, $466 million in Thermal Oil and $14
            million for corporate assets;
        --  at December 31, 2013, Athabasca had liquidity of approximately
            $673 million, including cash and cash equivalents, short-term
            investments and funds available under Athabasca's undrawn
            credit facility.

The Company is filing its financial statements for the 12 month period and 
management's discussion and analysis ("MD&A") for the three and 12 month 
periods ended December 31, 2013. The Company is also filing its annual 
information form for the year ended December 31, 2013, which includes the 
Company's statement of reserves data and other detailed information concerning 
the evaluations that were conducted by the Company's independent qualified 
reserves evaluators, GLJ Petroleum Consultants Ltd. ("GLJ") and DeGolyer and 
MacNaughton Canada Limited ("D&M"), effective as at December 31, 2013. These 
documents can be retrieved electronically from Athabasca's website 
( and later this morning from SEDAR

The year-end independent reserve and resource evaluations reported gross 
proved plus probable reserves to be 482 million barrels of oil equivalent. 
Athabasca also holds 10.5 billion barrels of contingent resources (best 
estimate) as of December 31, 2013 (for details about the Company's reserve and 
resource estimates see Schedule A provided below).

"The delay of the Dover approval made 2013 a challenging year for Athabasca," 
says Sveinung Svarte, President and CEO. "However, we also delivered many 
significant milestones as we continued our transition from a largely 
exploration stage Company to becoming a producer. Looking forward, and with 
the Dover Order in Council received, we expect 2014 to be a pivotal year as 
Athabasca continues to focus on realizing the significant resource potential 
of its assets."

Light Oil

Athabasca's production averaged 6,397 boe/d (49% liquids) in 2013 compared to 
1,684 boe/d (42% liquids) in 2012, representing a 280% increase. The Company 
also recognized a higher netback of $31.29/boe during 2013 compared to 
$23.49/boe in 2012 due to increasing commodity prices, higher liquids content 
and reductions in operating costs.

In 2013, the Company deployed $282 million of capital in Light Oil including 
infrastructure, drilling and completion activities in the Fox Creek area.

Athabasca drilled 20 and completed 22 horizontal Montney wells during 2013. At 
the end of the year, land tenure for over 95% of the Company's prime Montney 
land had been extended into the intermediate term, allowing for increased 
focus on Athabasca's extensive Duvernay position.

In the third quarter of 2013, Athabasca recommenced its Duvernay drilling 
program with a goal of delineating and continuing its high-graded land 
position in the Kaybob region. One vertical well and three horizontal wells 
were rig released by the end of 2013. The horizontal wells will be completed 
and brought on production by mid-year 2014. Athabasca currently holds 350,000 
net acres of potential liquids-rich Duvernay land, including 200,000 net acres 
which contain greater than 20 meters of shale pay and lie in the heart of the 
Duvernay Kaybob fairway.

In December 2013, Athabasca sold a 50% interest in its gas pipeline and two of 
its batteries in the Kaybob area for gross proceeds of $146 million. Athabasca 
has fully recovered its initial investment in these facilities, retains 
operatorship of this key area infrastructure and maintains sufficient capacity 
to accommodate its anticipated production growth for the next few years.

The Light Oil division now holds proved plus probable reserves of 33 million 
barrels of oil equivalent, an increase of approximately 48% compared to the 
prior year.

Thermal Oil

In 2013, the Company spent $466 million of capital in the Thermal Oil division 
including $404 million on Hangingstone, $38 million on Dover West, $18 million 
on the Company's 40% interest in the Dover Commercial Project ("DCP") and $6 
million on other Thermal Oil projects.

Athabasca made significant progress in the development of Hangingstone Project 
1. The central processing facility, well pads, pipelines and area 
infrastructure are progressing. Construction continues on site with module 
fabrication and installation on track. The project was 59% complete at 
year-end 2013 with contracts secured for 80% of the sanctioned value of the 
project. Construction of Hangingstone Project 1 is anticipated to be complete 
near the end of 2014, with first steam targeted towards the end of the first 
quarter 2015.

By the end of 2013, 15 producer wells and 10 injector wells had also been 
drilled. Drilling was completed on time and within budget. The reservoir 
quality is consistent with expected results derived from Athabasca's extensive 
appraisal drilling and reservoir modeling.

The Company submitted an application to the Alberta Energy Regulator in 2013 
for the Hangingstone 70,000 bbl/d expansion project. With the filing of this 
regulatory application, Athabasca now has gross proved plus probable reserves 
of 450 million barrels in its Thermal Oil division, an increase of 31% 
compared to the prior year. Within its Thermal Oil division, Athabasca also 
holds 10.5 billion barrels of contingent resources (best estimate).

Athabasca received regulatory approvals for its Leduc Carbonate thermal 
assisted gravity drainage ("TAGD") pilot and demonstration project in 
September 2013. TAGD uses electrical conductive heating rather than steam to 
enable bitumen recovery.

Dover Commercial Project

In early 2014, outstanding statements of concern from the Fort McKay First 
Nation regarding the DCP were resolved. Fort McKay discontinued its appeal of 
the Alberta Energy Regulator's approval of the DCP, and the project received 
Order in Council on March 13, 2014. The Company expects final regulatory 
approval from Alberta Environment in the coming weeks, which will allow 
Athabasca to exercise its put option to sell its remaining 40% interest in the 


In the fourth quarter of 2013, Athabasca expanded its revolving senior secured 
first lien credit facility from $200 million to $350 million providing 
Athabasca with additional borrowing capacity. At December 31, 2013, Athabasca 
had liquidity of approximately $673 million, including cash and cash 
equivalents, short-term investments and the $350 million credit facility, 
which is currently undrawn.

2014 Outlook

Athabasca's Board of Directors approved an initial 2014 capital budget of $460 
million, and subsequently approved an additional $20 million for its 40% 
interest in the DCP. The 2014 capital budget focuses on the Company's key near 
term priorities, including the completion of Hangingstone Project 1, 
preparation for a Hangingstone Expansion and a targeted Duvernay drilling and 
completion program. Athabasca has set a first quarter production guidance 
range of 6,000 to 6,500 boe/d. Second quarter production is expected to be in 
the range of 5,500 to 6,000 boe/d which contemplates a scheduled shut-down of 
the Keyera Simonette plant in April, 2014.

Upon receipt of the Dover put option proceeds, affirmation of the productivity 
of Athabasca's new Duvernay wells and determination of the outcome of its 
Duvernay joint venture process, Athabasca expects to provide an updated 
capital budget in July.

Athabasca will continue to evaluate additional funding sources, including 
joint ventures, to advance the development of its portfolio of Light Oil and 
Thermal Oil opportunities. Athabasca remains committed to a disciplined 
approach to growth and will only allocate financial resources and personnel to 
projects that are fully funded.

Amendment to Athabasca's Corporate By-laws

On March 18, 2014, the Company's Board of Directors repealed Athabasca's 
corporate By-Law No. 1 dated effective August 23, 2006, and approved Amended 
and Restated By-Law No. 1 (the "Amended and Restated By-Law") to take its 

Among other things, the Amended and Restated By-Law enacts new provisions 
that: (i) fix a deadline by which shareholders must submit a notice of 
director nominations to the Company prior to any annual or special meeting of 
shareholders where directors are to be elected; and (ii) specifies the 
information that a nominating shareholder must include in such a notice in 
order for it to be valid (the "Advance Notice Provisions"). The purpose of the 
Advance Notice Provisions is to, among other things, allow Athabasca's 
shareholders to receive adequate notice of director nominations with 
sufficient information regarding all of the nominees to enable them to cast an 
informed vote to elect directors.

The minimum quorum requirement for shareholder meetings has also been 
increased to require that two shareholders holding or representing not less 
than 10% of the shares entitled to be voted at such a meeting must be present 
at the meeting.

The Amended and Restated By-Law also provides that the chairman shall no 
longer have a second or casting vote in the event of an equality of votes at 
either a board meeting or a shareholder meeting.

The Amended and Restated By-Law is effective immediately. At the next 
Athabasca shareholder meeting, shareholders will be asked to confirm and 
ratify the Amended and Restated By-Law.

Conference Call and Webcast, March 19, 2014
7:30 am Mountain Time (9:30 am Eastern Time)

A conference call and webcast to discuss the 2013 year-end results will be 
held for the investment community and media on March 19, 2014 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 
12:30 pm ET on March 19, 2014 until midnight on March 25, 2014 by dialing 
855-859-2056 (toll-free in North America) or 416-849-0833 and entering 
conference password 31086128.

This conference call is also available by webcast for listening purposes only. 
The webcast link can be found on 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 10.5 billion barrels of bitumen 
resources (contingent resources, best estimate) and growing light oil 
production, Athabasca is positioned to become a major oil producer. 
Athabasca's common shares trade on the TSX under the symbol "ATH". For more 
information, visit

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: the timing of the completion of the construction 
of Hangingstone Project 1 and of first steam for Hangingstone Project 1; 
expectations regarding the receipt of regulatory approval from Alberta 
Environment in respect of the DCP; expected production from the light oil 
division in the first quarter and second quarter of 2014; expectations 
regarding the review and revision of the 2014 capital budget; the evaluation 
of funding sources, potential joint ventures and the future allocation of 

The information and statements in this News Release relating to Athabasca's 
estimated proved reserves, probable reserves and contingent resources (best 
estimate) are also 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 reserves and resources estimates contained in this 
News Release were evaluated by GLJ and D&M in their respective reserves and 
resources reports dated effective December 31, 2013. For important additional 
information regarding Athabasca's reserves and resources estimates and the 
evaluations that were conducted by GLJ and D&M please see "Independent Reserve 
and Resource Evaluations" in Athabasca's AIF that is or will be available on 
SEDAR at as well as the "Reserves and Resource Information" at 
the end of Schedule A attached to this news release.

With respect to forward-looking information contained in this News Release, 
assumptions have been made regarding, among other things: geological and 
engineering estimates in respect of Athabasca's reserves and resources; the 
geography of the areas in which the Company is conducting exploration and 
development activities; the applicability of technologies for the recovery and 
production of Athabasca's reserves and resources; 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; 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 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 AIF, including, but not limited to: the substantial capital 
requirements of Athabasca's projects and the ability to obtain financing for 
Athabasca's capital requirements; failure to meet the conditions precedent to 
the exercise by Athabasca of the Dover Put Option, including failure to 
receive the approval of Alberta Environment when anticipated or at all; the 
potential impact of the exercise of the Dover Put Option on Athabasca; the 
potential for adverse consequences in the event that Athabasca defaults under 
certain of the PetroChina Transaction Agreements; failure by counterparties 
(including, without limitation, PetroChina International and Phoenix Energy 
Holdings Limited ("Phoenix")) to make payments or perform their operational or 
other obligations to the Athabasca in compliance with the terms of contractual 
arrangements between Athabasca and such counterparties, including in 
compliance with the time schedules set out in such contractual arrangements, 
and the possible consequences thereof; aboriginal claims; fluctuations in 
market prices for crude oil, natural gas and bitumen blend; general economic, 
market and business conditions in Canada, the United States and globally; 
failure to obtain regulatory approvals or maintain compliance with regulatory 
requirements; dependence on Phoenix as the joint venture participant in the 
Dover Oil Sands Project, until such time as Athabasca's interests in the Dover 
assets have been sold to Phoenix pursuant to the exercise of the Dover Put 
Option; failure to meet development schedules and potential cost overruns; 
variations in foreign exchange and interest rates; factors affecting potential 
profitability; risks related to future acquisition and joint venture 
activities; reliance on, competition for, loss of, and failure to attract key 
personnel; global financial uncertainty; uncertainties inherent in estimating 
quantities of reserves and resources; changes to Athabasca's status given the 
current stage of development; uncertainties inherent in SAGD, TAGD and other 
bitumen recovery processes; risks related to hydraulic fracturing; expiration 
of leases and permits; risks inherent in Athabasca's operations, including 
those related to exploration, development and production of petroleum, natural 
gas and oil sands reserves and resources, including the production of oil 
sands reserves and resources using SAGD, TAGD or other in-situ technologies; 
risks related to gathering and processing facilities and pipeline systems; 
availability of drilling and related equipment and limitations on access to 
Athabasca's assets; increases in operating costs could make Athabasca's 
projects uneconomic; the effect of diluent and natural gas supply constraints 
and increases in the costs thereof; gas over bitumen issues affecting 
operational results; environmental risks and hazards and the cost of 
compliance with environmental regulations, including GHG regulations and 
potential Canadian and U.S. climate change legislation; extent of, and cost of 
compliance with, government laws and regulations and the effect of changes in 
such laws and regulations from time to time; risks related to Athabasca's 
filings with taxation authorities, including the risk of tax related reviews 
and reassessments; changes to royalty regimes; political risks; failure to 
accurately estimate abandonment and reclamation costs; exploration, 
development and production risks inherent in crude oil and natural gas 
operations, including 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; long term reliance on 
third parties; reliance on third party infrastructure; seasonality; hedging 
risks; risks associated with establishing and maintaining systems of internal 
controls; insurance risks; claims made in respect of Athabasca's operations, 
properties or assets; the effect of a change of control under 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 Athabasca or the holder of certain licenses, leases 
or permits to meet specific requirements of such licenses, leases or permits; 
risks related to the Athabasca's amended credit facilities; breaches of 
confidentiality; costs of new technologies; alternatives to and changing 
demand for petroleum products; risks related to the Athabasca's common shares; 
and risks pertaining to Athabasca's senior secured notes.

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.

Schedule A

Independent reserve and resource evaluations

The Company's independent qualified reserves evaluators, GLJ and D&M, 
completed independent reserve and resource evaluations effective December 31, 
2013. The Company's estimated bitumen reserves are located in the 
Hangingstone, Dover West Sands and Dover areas in the Company's Thermal Oil 
division. The Dover project is part of the 40% joint venture between Athabasca 
and Phoenix Energy Holding Limited ("Phoenix"), a subsidiary of PetroChina 
International. The Company's light oil, natural gas and natural gas liquids 
reserves are located primarily in the Fox Creek area within the Company's 
Light Oil division.

The following table shows the Company's estimated reserves by project:
                                             Gross     Proved Plus
                                            Proved        Probable
    Reserves(1)                           Reserves        Reserves
      Hangingstone (MMbbls)                     51             225
      Dover West Sands (MMbbls)                  -              87
      Dover (MMbbls)(2)                          -             138
    Thermal Oil Division                        51             450
    Light Oil Division (MMboe)                  15              33
    Consolidated Reserves (MMboe)               66             482
    (1)   Refer to "Reserves and Resource Information" below for important
          information regarding the Company's reserves estimates. Subtotals
          do not add due to the impact of rounding.
    (2)   The Company's investment in Dover is accounted for using the
          equity method and the reserve estimates set out above reflect the
          Company's indirect undivided 40% working interest in the Dover

The table below summarizes the Company Interest Contingent Resources (Best 
Estimate) of all six of Athabasca's thermal oil projects, as evaluated by GLJ 
and D&M effective December 31, 2013. 

    Company Interest Contingent Resources (MMbbls)(1)         Estimate
    D&M REPORT                                                        
      Hangingstone                                                 782
      Birch                                                      2,111
    TOTAL D&M REPORT                                             2,893
    GLJ REPORT                                                        
      Dover(2)                                                   1,222
      Dover West Sands                                           2,957
      Dover West Leduc Carbonates                                3,001
      Grosmont(3)                                                  418
    TOTAL GLJ REPORT                                             7,599
    (1)   Refer to the "Reserves and Resource Information" below important
          information regarding the Company's Contingent Resources
          estimates. Subtotals do not add due to the impact of rounding.
    (2)   The Company's investment in Dover is accounted for by the equity
          method and the reserve estimates set out above reflect the
          Company's indirect undivided 40% working interests in the Dover
    (3)   GLJ considers the estimated Contingent Resources of 418 MMbbls
          (Best Estimate) to be sub-economic based upon a 10% discount

The estimates of reserves for individual properties or projects may not 
reflect the same confidence level as estimates of reserves for all properties 
due to the effect of aggregation. Reserves figures included in the table that 
is provided above have been rounded to the nearest MMbbl or MMboe. There is no 
certainty that it will be commercially viable to produce any portion of the 
resources. Contingent Resources included in the table that is provided above 
have been rounded to the nearest MMbbl.

Netback values are calculated by subtracting royalties and operating and 
transportation expenses from petroleum and natural gas sales.

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 (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.

For additional important information regarding the reserves and resources of 
the Company evaluated by GLJ and D&M, effective December 31, 2013, including 
the definitions for the resource categories used in this Press Release, please 
refer to the Company's AIF that is available on SEDAR at

SOURCE  Athabasca Oil Corporation 
Media and Financial Community  Andre De Leebeeck Vice President, 
Investor Relations and Communications 1-403-817-8048  Financial Community Tracy Robinson Manager, 
Investor Relations 1-403-532-7446   
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CO: Athabasca Oil Corporation
ST: Alberta
-0- Mar/19/2014 10:00 GMT
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