Athabasca Oil Corporation Announces Closing of the Dover Transaction

 Athabasca Oil Corporation Announces Closing of the Dover Transaction  CALGARY, Aug. 29, 2014 /CNW/ - Athabasca Oil Corporation (TSX: ATH)  ("Athabasca" or "the Company") announces that it has closed the sale of its  40% interest in the Dover oil sands project to Phoenix Energy Holdings Limited  ("Phoenix"), a wholly owned subsidiary of PetroChina International Investment  Limited, for net proceeds of $1,184 million.  At closing, Athabasca received a cash payment of $600 million, in addition to  three interest bearing promissory notes (the "Promissory Notes") issued by  Phoenix for the remaining $584 million. The Promissory Notes are unconditional  and secured by irrevocable, standby letters of credit issued by HSBC Bank  Canada and mature as follows:            --  on March 2, 2015 a cash payment of $300 million;         --  on August 28, 2015 a cash payment of $150 million; and         --  on August 29, 2016 a final cash payment of $134 million.  "Closing of the Dover transaction is an important milestone for Athabasca and  marks the beginning of a new chapter for our Company," says Sveinung Svarte,  President and CEO. "We can now finalise our business strategy which will be  focused on profitable production and reserve growth, cash flow growth, cost  discipline and balance sheet flexibility. We intend to provide a full  strategic update in early September including revised guidance and capital  plans. The Company now has ample liquidity to continue development of its  Duvernay and Hangingstone core assets and the timing of the cash payments  under the promissory notes is aligned with our capital spending plans over the  next couple of years."  About Athabasca Oil Corporation Athabasca Oil Corporation is a 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. Athabasca's common shares trade on the TSX  under the symbol "ATH". For more information, visit www.atha.com.  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 a words such as  "will", "plan", "intend" and "continue" 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 receipt of proceeds from the Promissory  Notes; the Company's expected need for and allocation of capital; the  Company's liquidity position; and the Company's plans for and development  activities with respect to the Hangingstone and Duvernay assets.  With respect to forward-looking information contained in this News Release,  assumptions have been made regarding, among other things: the receipt of the  payment under the Promissory Notes in a timely manner; the Company's capital  spending plans over the next several years; future sources of funding for the  Company's capital programs; the Company's future debt levels; the Company's  ability to obtain financing and/or enter into joint venture arrangements, on  acceptable terms; and the impact that the timing of the Company's receipt of  payments made by Phoenix under the Promissory Notes will have on the Company,  including on the Company's financial condition, capital programs and results  of operations.  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 ("AIF") dated March 18 2014,  available on SEDAR at www.sedar.com, including, but not limited to: the  substantial capital requirements of Athabasca's projects and the ability to  obtain financing for Athabasca's capital requirements; the potential for  adverse consequences in the event that the Company is unable to collect any or  all of the amounts owing to it under the Promissory Notes; general economic,  market and business conditions in Canada, the United States and globally;  including risks affecting the ability of HSBC Bank Canada to honour  obligations under the irrevocable letters of credit issued by it to secure the  Promissory Notes; the potential for management estimates and assumptions to be  inaccurate; competition for, among other things, capital; failure to satisfy  certain conditions in connection with the Company's debt and credit  facilities; and risks pertaining to the Company's debt and credit facilities.  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.    SOURCE  Athabasca Oil Corporation  Media and Financial Community Matthew Taylor Vice President, Capital Markets  and Communications 1-403-817-9104 mtaylor@atha.com  Financial Community Tracy Robinson Manager, Investor Relations 1-403-532-7446  trobinson@atha.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/August2014/29/c8210.html  CO: Athabasca Oil Corporation ST: Alberta NI: OIL NEWSTK  
Press spacebar to pause and continue. Press esc to stop.