Athabasca Oil Corporation - ATHOF stock
OTC Market: ATHOF
Athabasca Oil Corporation is a Canadian company that explores, develops, and produces light and thermal oil resource plays in the Western Canadian Sedimentary Basin in Alberta. The company operates through Thermal Oil and Light Oil segments, with its primary properties located in the Greater Placid and Greater Kaybob areas near the Town of Fox Creek in northwestern Alberta, as well as the Leismer and Hangingstone projects in the Athabasca region of northeastern Alberta. Athabasca Oil Corporation produces various types of oil and natural gas, including light and medium crude oil, tight oil, conventional natural gas, shale gas, natural gas liquids, and bitumen from sand and carbonate rock formations. The company was formerly known as Athabasca Oil Sands Corp. before changing its name to Athabasca Oil Corporation in May 2012 and was incorporated in 2006, with its headquarters in Calgary, Canada.
Athabasca Oil Corporation was incorporated in 2006 and is headquartered n Calgary, Canada. The company's origin can be traced back to its initial focus on the Athabasca oil sands, a major deposit of bitumen and heavy crude oil located in northeastern Alberta, Canada.
The Athabasca oil sands are known for their vast reserves of bitumen, a heavy and thick form of crude oil. Extracting and processing bitumen from the oil sands is a complex and resource-intensive process, but it holds significant potential as a valuable energy resource.
As an oil sands-focused company, Athabasca Oil Corporation aimed to develop and produce bitumen from its leases in the Athabasca region. The company's early years were likely devoted to exploration and development activities, including drilling and assessing the potential of its properties. Over time, Athabasca Oil Corporation expanded its operations beyond oil sands and diversified its energy assets. This diversification allowed the company to include other oil resource plays, such as light oil and natural gas, within its portfolio.
To reflect this expanded focus and presence in the energy industry, the company changed its name from Athabasca Oil Sands Corp. to Athabasca Oil Corporation in May 2012.
The Thermal Oil Division comprises two active oil sands projects that utilize Steam Assisted Gravity Drainage (SAGD) technology, along with an extensive set of exploration areas in the Athabasca region of northeastern Alberta. These projects play a crucial role for Athabasca by providing a substantial and enduring production foundation, leading to significant positive cash flow for the company. The thermal assets employ SAGD, an advanced technique for recovering bitumen. This involves drilling two parallel wells into the reservoir, roughly 5 meters apart. The upper well introduces steam into the reservoir to heat the bitumen, while the lower well extracts the heated bitumen and condensed steam. The resulting mixture is sent to the surface facility, where the oil and water separate. The water is then recycled back into the process, with approximately 80-90% of the steam generation water being reused. The development of resources is executed through pad drilling, which minimizes land disruption. Importantly, the SAGD process doesn't require mining, tailings ponds, or extensive land excavation.
In the Light Oil Division, Athabasca engages in the extraction of light oil and liquid-rich natural gas from unconventional reservoirs. The primary aim is to concentrate on ventures that promise elevated profits and swift returns on investment. Athabasca has a 70% controlling stake in the Montney area at Greater Placid and a 30% non-operational stake in the Duvernay region at Greater Kaybob. Remarkably, the Light Oil Division has consistently achieved superior netbacks compared to other Canadian counterparts. Additionally, Athabasca possesses and manages key regional infrastructure that offers direct entry to end markets.
Initial Public Offering
An initial public offering in 2010 sold 19% of the company and raised approximately $1.3 billion.
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- Wikipedia. Athabasca Oil Corporation. Retrieved on 7/30/2023.
- Chem Europe. Athabasca Oil Sands. Retrieved on 7/30/2023.
- newswire.ca. Athabasca Oil Sands Corp. Becomes Athabasca Oil Corporation. May 10, 2012.
- atha.com. Operations - Thermal Oil. Retrieved on 8/12/2023.
- atha.com. Light Oil. Retrieved on 8/12/2023.