UPDATE: Athabasca Oil Cor Slips Nearer To Yr Lows As Announces 2012 Year-End Results

Athabasca Oil Corporation (ATH.TO), trading near a year low $8.85, announced its 2012 Year End Results. The company said it achieved "numerous corporate milestones and transitioned from a pure exploration company to an exploration and production (E&P) company with a balanced portfolio of light oil production and a wholly-owned thermal oil project under construction."

Some of the 2012 highlights include:

Light Oil

- Completion of infrastructure, including a 63-kilometre-long, 12-inch-diameter trunk pipeline from Kaybob West to the Keyera Simonette Gas Plant and oil batteries at Kaybob West, Kaybob East and Saxon/Placid with a capacity of 36,000 bbl/d of oil and 48 mmcf/d of natural gas.

- Production ramp-up in the Kaybob area, during Q4 2012, as the wholly-owned infrastructure was commissioned. On December 17, 2013, the Company achieved peak production rates of 10,700 boe/d with 57% liquids;

- In 2012, Athabasca drilled 46 horizontal wells (and completed 44 horizontal wells) targeting unconventional reservoirs in the Duvernay, Montney and Nordegg formations. At December 31, 2012, 33 wells were on production, 22 wells were awaiting tie-in and seven wells were awaiting completions;

- Athabasca completed three very good Duvernay wells of which the best, the 2-34-62-20W5M well, while producing on restricted flow, in February and March 2013, has averaged greater than 800 boe/d (63% liquids) at a flowing surface pressure of greater than 20 megaPascals gauge (mPag).

Thermal Oil

- Receipt of regulatory approvals, in October, for the Hangingstone Project 1, a 12,000 bbl/d SAGD project. In November, the Board of Directors sanctioned the $536-million construction of the Hangingstone Project 1 and $27 million for associated infrastructure. The project is currently under construction.

- Demonstration of "Proof of Concept" for the Thermal Assisted Gravity Drainage production technology during two field test phases at Dover West, effectively heating the reservoir rock in the Leduc carbonates.


- With the ramp-up of production through its wholly-owned infrastructure, Athabasca embarked on the path of significant growth in revenues from its Light Oil Division, earning a netback of $10.8 million in Q4 2012 from production of greater than 4,000 barrels of oil equivalent per day (boe/d) which was comprised of 43% liquids, as compared to $1.0 million in Q4 2011 from production of approximately 400 boe/d which was comprised of 35% liquids.

- Total capital spending in 2012 was $1.1 billion compared to $621.9 million in 2011. Spending was comprised of $478 million in Thermal Oil Division and $611 million in the Light Oil Division, with the remainder allocated to Corporate.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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