RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2014-09-02 18:05:00

PETROCHINA & ATHABASCA: $ 1.1 BLN

PETROCHINA & ATHABASCA: $ 1.1 BLN

Athabasca Oil Corp. (ATH) closed a C$1.18 ($1.1 billion) agreement with PetroChina Co. (857) to sell the rest of its Dover oil-sands project, ending weeks of speculation about whether the Chinese company would pay. The shares rose.

PetroChina's payment includes C$600 million in cash and C$584 million in promissory notes due through August 2016, backed by guarantees from HSBC Bank Canada, Athabasca said today. The original agreement was for PetroChina to pay in cash. The settlement comes two months after Calgary-based Athabasca had estimated the deal would close after triggering the sale of its 40 percent stake in Dover earlier this year.

The payment was delayed as the Chinese government was investigating PetroChina executives over allegations of corruption, according to reports from publications including Beijing-based Caixin. A report in Canada's Financial Post was among several suggesting the state-owned company was trying to delay its purchase or claw back the price.

"It closes a chapter around the whole corruption issues overhanging the stock," Phil Skolnick, an analyst at Canaccord Genuity Corp. in New York, said in a phone interview today. "It would have been better if they could have received the full funds immediately. The stock would have reacted more positively to it."

Athabasca surged as much as 5.5 percent after the announcement and gained 4.4 percent to C$7.92 at the close in Toronto. The shares fell to a nine-month low of C$5.80 on July 29 amid concerns the payment would be delayed and have since rebounded.

Athabasca agreed to make a C$49 million payment to PetroChina earlier this month, lowering the sale price, to cover for future abandonment costs for oil and natural gas wells.

Drilling Plans

The company is relying on the Dover sale funds to pay for future drilling, including in the Duvernay shale in Alberta where it's seeking partners. With the initial cash payment, Athabasca will have enough to pursue drilling plans, Skolnick said.

A full update of the company's plans will be released in early September, including revised forecasts and a capital spending outlook, Athabasca said.

Athabasca on Feb. 21 announced it had reached an agreement with an Alberta aboriginal group, paving the way to complete the deal with PetroChina. A put option exercised by Athabasca on April 17 forced a PetroChina subsidiary to buy the 40 percent it didn't own in the undeveloped Dover oil-sands project in northeastern Alberta, based on a 2010 agreement.

'Ample Liquidity'

"The Company now has ample liquidity to continue development of its Duvernay and Hangingstone core assets," Athabasca Chief Executive Sveinung Svarte said in the statement.

The Dover project contains reserves of 4.1 billion barrels at a 50 percent recovery rate, Alberta's energy regulator said in August. Athabasca expects production at the site to reach 250,000 barrels a day at full capacity.

bloomberg.com

Tags: PETROCHINA, ATHABASCA, OIL,
Chronicle:
PETROCHINA ATHABASCA: $ 1.1 BLN
2021, December, 2, 12:09:00
TRANSPORTATION OIL AND GAS CONGRESS, 21th-22th of February, 2022
Business and Technical Views On The Market At The Transportation Oil and Gas Congress 2022
PETROCHINA ATHABASCA: $ 1.1 BLN
2021, December, 2, 12:08:00
LEARN THE LATEST GLOBAL LNG TRENDS WITH LNGCON 2022
The next edition of the International LNG Congress (LNGCON 2022) takes place in Dusseldorf, Germany on March 28-30, 2022. Covering the whole LNG value chain, the Congress brings together decision makers of the industry to tackle the most relevant issues such as the role of LNG in the transition towards zero-carbon shipping.
PETROCHINA ATHABASCA: $ 1.1 BLN
2021, December, 2, 12:07:00
ENERGY WEEK CENTRAL ASIA & MONGOLIA 2022
To learn more, join the upcoming high-level international investment conference Energy Week Central Asia & Mongolia 2022, which will take place on 26-28th April in Tashkent.
PETROCHINA ATHABASCA: $ 1.1 BLN
2021, December, 2, 12:06:00
WORLD GAS CONFERENCE 2022
The 28th World Gas Conference (WGC 2022) takes place in Daegu, the energy city of Korea in May 2022.
PETROCHINA ATHABASCA: $ 1.1 BLN
2021, December, 2, 12:05:00
GAZPROM GAS PRODUCTION +14.7%
Brent rose $3.25, or 4.7%, to $72.48 a barrel, WTI rose $3.01, or 4.6%, to $69.19 a barrel.
PETROCHINA ATHABASCA: $ 1.1 BLN
2021, December, 2, 12:00:00
RENEWABLES FOR POLAND
The measure was initially approved in 2017, with a budget of approximately €9.4bn (PLN40bn), and was set to expire on 30 June 2021.
PETROCHINA ATHABASCA: $ 1.1 BLN
2021, December, 1, 16:15:00
OIL PRICE: NOT BELOW $72
Brent rose $3.25, or 4.7%, to $72.48 a barrel, WTI rose $3.01, or 4.6%, to $69.19 a barrel.
All Publications »