1; the anticipated production capacity of the Hangingstone Project 1; the expected timing of the receipt of regulatory approval for the Dover oil sands project, the exercise of the Dover Put Option and the receipt of sale proceeds from the sale of the Company’s Dover interests; the estimated quantity of the Company’s Contingent Resources; the Company’s drilling plans, in particular, with respect to the Duvernay and Montney formations; the Company’s plans for, and results of, exploration and development activities; the Company’s estimated future commitments; the Company’s business and financing plans; the Company’s business and financing strategies, including its plans to develop its resources with joint venture partners, the expected effects that the sale of the Company’s light oil infrastructure will have on the Company’s light oil joint venture process; the Company’s anticipated pipeline capacity requirements; the timing of the submission of project regulatory applications; the timing for receipt of regulatory approvals; the sanctioning of projects; the use of in-situ recovery methods such as SAGD and TAGD for production of recoverable bitumen; and Athabasca’s plans with respect to the Thermal Oil and Light Oil assets and the expected benefits to be received by Athabasca from such assets.
With respect to forward-looking information contained in this News Release, assumptions have been made regarding, among other things: the Company’s ability to successfully complete a joint venture; the Company’s ability to obtain financing on acceptable terms; 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; geological and engineering estimates in respect of the Company’s reserves and resources; the geography of the areas in which the Company is conducting exploration and development activities; 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; the impact that the sale of the Company’s light oil infrastructure will have on the Company, including on the Company’s light oil joint venture process; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which the Company conducts and will conduct its business; and the applicability of technologies for the recovery and production of the Company’s reserves and resources. The Company has also assumed that the appeal by the Fort McKay First Nation that is described in the press release that was issued by Athabasca on October 18, 2013, will not have an impact upon the timing of the regulatory review/approval process in respect of the Dover oil sands project.
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 filed on March 28, 2013 (“AIF”), available on SEDAR at www.sedar.com, including, but not limited to: fluctuations in market prices for crude oil, natural gas and bitumen blend; general economic, market and business conditions; dependence on Phoenix as the joint venture participant in the Dover oil sands project; Aboriginal claims; failure to satisfy certain conditions in connection with the Company’s debt and credit facilities; variations in foreign exchange and interest rates; factors affecting potential profitability; factors affecting funding, including the development of new business opportunities, the availability of financing, risks arising from future joint venture activities; risks that joint venture arrangements will not perform as expected; the priorities of the Company and of its current and future joint venture partners; general economic conditions, uncertainties inherent in estimating quantities of reserves and resources; Athabasca’s status and stage of development; uncertainties inherent in SAGD; the potential impact of the exercise of the Dover put/call options on the Company; failure to receive regulatory approval for the Dover oil sands project and, Hangingstone Expansion project when anticipated or at all; failure to obtain other regulatory approvals, if any, for the completion of the Dover put/call option transaction on the terms and conditions set forth in the Put/Call Option Agreement; failure to meet development schedules and potential cost overruns; increases in operating costs making projects uneconomic; the effect of diluent and natural gas supply constraints; the potential for adverse consequences in the event that the Company defaults under certain of the PetroChina Transaction Agreements; failure to retain key personnel; the substantial capital requirements of the Company’s projects; the need to obtain regulatory approvals and maintain compliance with regulatory requirements; 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; changes to royalty regimes; political risks; risks inherent in the Company’s operations, including those related to exploration, development and production of oil sands, crude oil and natural gas reserves and resources, including the production of oil sands reserves and resources using SAGD and 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 for project facilities; failure by counterparties (including without limitation Phoenix) to comply with the terms of contractual arrangements between the Company and such counterparties; the potential lack of available drilling equipment and limitations on access to the Company’s assets; claims made in respect of the Company’s operations, properties or assets; the potential for adverse consequences as a result of the change of control provisions in the PetroChina Transaction Agreements; competition for, among other things, capital and export pipeline; the failure of the Company or the holder of certain licenses or leases to meet specific requirements of such licenses or leases; and volatility in the market price of the common shares. In addition, information and statements in this News Release relating to “resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described exist in the quantities predicted or estimated, and that the resources described can be profitably produced in the future. The assumptions relating to the Company’s reserves and resources are contained in the reports of GLJ Petroleum Consultants Ltd. (“GLJ” or the “GLJ Report”) and DeGolyer and MacNaughton Canada Limited (the “D&M Report”) each dated effective December 31, 2012.
The forward-looking information included in this News Release is expressly qualified by this cautionary statement and is made as of the date of this News Release. The Company does not undertake any obligation to publicly update or revise any forward-looking information except as required by applicable securities laws.
Oil and Gas Information:
“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 equivalent (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.
SOURCE Athabasca Oil Corporation
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Media and Financial Community
Andre De Leebeeck
Vice President, Investor Relations and
Manager, Investor Relations