CALGARY,
July 28, 2014 /CNW/ - In light of
recent market speculation and investor queries Athabasca Oil
Corporation (TSX: ATH) ("Athabasca" or "the Company") is providing
clarification on the status of the transaction relating to the
Dover Put Option, which it exercised on April 17, 2014. The Company confirms that it
continues to work with Phoenix Energy Holdings Limited to close the
transaction in accordance with the terms of the Put/Call Option
Agreement. Athabasca will update
the market on material developments.
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
www.atha.com.
Reader Advisory:
This News Release contains forward-looking
information about the Company's anticipated timing of closing of
the Dover Put Transaction and the outcome of the Company's
discussions with Phoenix regarding
the Put/Call Option Agreement. This information involves various
risks, uncertainties and other factors. All information other than
statements of historical fact is forward-looking information. The
forward-looking information is not historical fact, but rather is
based on the Company's current plans, objectives, goals,
strategies, assumptions and projections about the Dover Put
Transaction. 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.
With respect to forward-looking information
contained in this News Release, assumptions have been made
regarding, among other things: Phoenix's timelines with respect to closing
the Dover Put Transaction; and the impact that the agreements
relating to the PetroChina transaction (the "PetroChina Transaction
Agreements"), including the Put/Call Option Agreement will have on
the Company, including on the Company's financial condition 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 Annual Information
Form dated March 18, 2014 that is
available on SEDAR at www.sedar.com 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 Athabasca defaults under
certain of the PetroChina Transaction Agreements; failure by
counterparties (including, without limitation, PetroChina
International and Phoenix
Phoenix to make payments or
perform their operational or other obligations to Athabasca in compliance with the terms of
contractual arrangements between Athabasca and such counterparties, including
in compliance with the time schedules set out in such contractual
arrangements, and the possible consequences thereof; failure to
meet the conditions precedent to the closing of the Dover put
transaction; risk of failing to complete a joint venture
arrangement; dependence on Phoenix
as the joint venture participant in the Dover Oil Sands Project,
until such time as Athabasca's
interests in the Dover assets have been sold to Phoenix; failure to meet development schedules
and potential cost overruns; factors affecting potential
profitability; risks related to future acquisition and joint
venture activities; reliance on, competition for, loss of, and
failure to attract key personnel; risks inherent in Athabasca's operations, including those
related to exploration, development and production of petroleum,
natural gas and oil sands reserves and resources; environmental
risks and hazards; failure to accurately estimate abandonment and
reclamation costs; the potential for management estimates and
assumptions to be inaccurate; long term reliance on third parties;
insurance risks; claims made in respect of Athabasca's business, operations, properties
or assets; risks related to the Athabasca's amended credit facilities; senior
secured notes and term loans; and risks related to the Athabasca's common shares.
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