Athabasca to sell certain light oil assets to private company for $160 million

Athabasca Oil Corp., Calgary, has agreed to sell non-core light oil assets in Alberta to an undisclosed private company for cash proceeds of $160 million (Can.).

The operator is divesting its 70% operated working interest in Placid targeting the Montney, its 30% non-operated working interest in Saxon and Simonette targeting the Duvernay, and other associated non-core Placid Montney assets. During first-half 2023, the assets collectively averaged 3,000 boe/d (45% liquids).

The deal, subject to customary conditions, is expected to close late in this year’s third quarter.

The company’s light oil division will now consist exclusively of the Duvernay in the Greater Kaybob area with 155,000 gross acres across Kaybob West, Kaybob North, Kaybob East, and Two Creeks.

Second-quarter 2023

Athabasca’s thermal oil division had average bitumen production of 29,016 b/d in second-quarter 2023 and generated operating income of $82 million. Capital expenditures of $30 million were primarily related to drilling operations and progressing the infrastructure expansion at Leismer to support sustainable growth up to 28,000 b/d by mid‐2024. 

The light oil division had second-quarter 2023 average production of 4,955 boe/d (55% liquids) and generated operating income of $14 million with capital expenditures of $11 million. Activity was focused on operational readiness in advance of the upcoming drilling season.