Mr. Sveinung Svarte reports

ATHABASCA OIL CORPORATION ANNOUNCES CLOSING OF THE DOVER TRANSACTION

Athabasca Oil Corp. has closed the sale of its 40-per-cent interest in the Dover oil sands project to Phoenix Energy Holdings Ltd., a wholly owned subsidiary of PetroChina International Investment Ltd., for net proceeds of $1,184-million.

At closing, Athabasca received a cash payment of $600 million, in addition to three interest-bearing promissory notes issued by Phoenix for the remaining $584-million. The promissory notes are unconditional and secured by irrevocable, standby letters of credit issued by HSBC Bank Canada, and mature as follows:

• On March 2, 2015, a cash payment of $300-million;
• On Aug. 28, 2015, a cash payment of $150-million;
• On Aug. 29, 2016, a final cash payment of $134-million.

"Closing of the Dover transaction is an important milestone for Athabasca and marks the beginning of a new chapter for our company," says Sveinung Svarte, president and chief executive officer. "We can now finalize our business strategy, which will be focused on profitable production and reserve growth, cash flow growth, cost discipline, and balance sheet flexibility. We intend to provide a full strategic update in early September, including revised guidance and capital plans. The company now has ample liquidity to continue development of its Duvernay and Hangingstone core assets, and the timing of the cash payments under the promissory notes is aligned with our capital spending plans over the next couple of years."

We seek Safe Harbor.