Athabasca Oil Corp.
, 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