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

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, 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 
Financial Community Tracy Robinson Manager, Investor Relations 1-403-532-7446 
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CO: Athabasca Oil Corporation
ST: Alberta
-0- Aug/29/2014 17:53 GMT
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