CALGARY, Alberta, March 03, 2021 (GLOBE NEWSWIRE) — Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or the “Company”) reports its 2020 year-end results and annual reserves. In a year of unprecedented challenges, Athabasca demonstrated the exceptional resilience of its low-decline assets. In 2021, Athabasca is focused on resuming its pre-COVID business plan of free cash flow generation, disciplined operations and preserving long term future projects across its portfolio. Armed with an unrestricted cash balance of $165 million, the Company is focused on refinancing its debt in order to capture the unparalleled cashflow generation potential from its long reserve life, oil weighted asset base.
Q4 2020 and 2020 Corporate Highlights
- Production: 34,233 boe/d (89% Liquids) in Q4 and 32,483 boe/d (88% Liquids) in 2020.
- Adjusted Funds Flow: $11 million in Q4 and ($19) million in 2020.
- Capital Expenditures: $89 million ($39 million in Light Oil and $50 million in Thermal Oil) in 2020.
- Balance Sheet & Sustainability: $165 million of unrestricted cash at year-end; Net Debt of $412 million representing 2.5x 2021 forecasted EBITDA (US$55 WTI/US$12.50 WCS heavy differential). The Company has an unhedged EBITDA sensitivity of ~$70 million for a US$5 move in oil price.
- Reserves: 1.2 billion boe Proved plus Probable (2P) Reserves, with Leismer/Corner underpinning 1 billion barrels of low risk, long reserve life resource.
- Reserve Value (NPV10 before tax): $508 million Proved Developed Producing and $1.6 billion Total Proved reserves under year-end 2020 price forecasts that are conservative relative to current strip commodity prices.
- Maintaining Production with Low Sustaining Capital: $100 million capital budget funded within forecasted funds flow; maintaining production guidance of 31,000 – 33,000 boe/d (90% Liquids).
- Balance Sheet: Athabasca plans to refinance its US$450 million Second Lien Notes during the year as energy credit markets continue to improve. The Company maintains strong Liquidity of $165 million that is forecasted to grow through 2021 under current strip commodity prices.
- Thermal Oil: Activity at Leismer will include drilling two infill wells at Pad L6 and an additional well pair at Pad L7, with an expected on stream in H2 2021. The Company also plans to drill five well pairs at Pad L8 in H1 2021. This highly economic project will support production levels in 2022 and beyond.
- Light Oil: No new wells are expected to be placed on-stream during the year with operations focused on maintaining low operating costs and top tier netbacks. In Q4, the Company achieved operating costs of $7.93/boe and an industry leading operating netback of $22.61/boe.
Recent ESG Initiatives
- Kitaskino Nuwenëné Wildland Provincial Park: In late 2020, Athabasca relinquished 235,000 acres of mineral-land interests, in partnership with the Mikisew Cree First Nation and the Government of Alberta, to create the world’s largest contiguous protected boreal forest area.
- Health, Safety and Environmental Results: The Company…