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Athabasca Oil (T.ATH) closes sale of oil sands stake to PetroChina

Stockhouse Editorial
1 Comment| August 29, 2014

Athabasca Oil Corp. (TSX: T.ATH, Stock Forum) said Friday it has closed the sale of its 40% stake in the Dover oil sands project to Pheonix Energy Holdings Ltd., a wholly-owned subsidiary of PetroChina Investments Ltd. for net proceeds of $1.18 billion.

Trading in Athabasca was halted Friday ahead of a press release to announce the development.

News that the sale has closed followed reports on Thursday that PetroChina was set to complete the deal. At closing, Athabasca received a cash payment of $600 million, in addition to three interes-bearing promissory notes issued by Pheonix for the remaining $584 million.

Prior to the trading halt, Athabasca was priced at $7.59, leaving a market cap of $3 billion, based on 401.7 million shares outstanding. The 52-week range is $8.84 and $5.47.

At current levels, the stock is up sharply from $6 at the end of July.

State-owned PetroChina, East Asia's biggest oil producer, said Thursday its first-half profit rose 4 per cent as sales of gasoline and natural gas increased.

PetroChina Ltd. earned 68.1 billion yuan ($11.2 billion), or 0.37 yuan (6 U.S. cents) per share, in the six months ended June 30. Revenue rose 4.8 per cent to 1.1 trillion yuan ($180 billion).

Gasoline consumption rose 1.3 per cent by volume but sales rose 9.7 per cent after increases in state-set prices. Natural gas sales rose 8.9 per cent after an increase in prices.

PetroChina's parent company, China National Petroleum Corp., has been embroiled in a corruption scandal. Its former head, Zhou Yongkang, and other present and former executives are under investigation.

With files from The Canadian Press

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v.MXR, 30 million shares o/s, management owns 29%, drilling completed on Nevada property in area of 3 other 1 million ounce plus gold mines, results expected with in the next 2 weeks.
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August 31, 2014
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