The Globe and Mail reports in its Tuesday edition Athabasca Oil issued a "clarification" on Monday about the sale of its share of an Alberta oil sands project. The Globe's Jeffrey Jones writes the statement did little in the way of clarifying and Athabasca's share fell 47 cents to close Monday at $6.41 on the Toronto Stock Exchange.
Investors have grown increasingly nervous about whether Athabasca will receive the $1.23-billion it is owed by PetroChina, which exercised a put option in April to acquire Athabasca's interest in the Dover project.
The uncertainty follows arrests in Beijing of some high-ranking Chinese officials in what has been called an anti-corruption purge.
"The company confirms that it continues to work with Phoenix Energy Holdings Ltd. to close the transaction in accordance with the terms of the put/call option agreement. Athabasca will update the market on material developments," it said in a brief statement. Phoenix Energy is PetroChina's Canadian unit.
Regulatory approval of the project earlier this year triggered Athabasca to exercise the put option, and investors have been anxiously waiting for the deal to close so the infusion of dollars can be put toward its other projects.
© 2024 Canjex Publishing Ltd. All rights reserved.