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FP says Athabasca could be waiting in vain for cheque

2014-08-21 09:36 ET - In the News

The Financial Post reports in its Thursday, Aug. 21, edition that four years after its $1.35-billion initial public offering, Athabasca Oil is strapped for cash. The Post's Claudia Cattaneo writes that Athabasca cut a $5-billion deal with PetroChina for its MacKay River and Dover projects. A critical part of the deal was a put/call option that would allow Athabasca to sell its entire remaining interest in the projects to PetroChina in the future. In China, the sweeping campaign to crack down on corruption in government and state-owned industries has uncovered scandals at the top ranks of PetroChina. The Chinese government is probing whether there were dodgy practices involving company executives posted in Calgary. At slightly more than $7 a share, Athabasca's stock is worth less than half its IPO price. Now, investors are anxiously waiting for an overdue payment from PetroChina, four months after Athabasca exercised the second of its two options to hand the Chinese company full control of the MacKay River and Dover developments. Athabasca's plans to move past the PetroChina deal, and get on with its light oil focus, are waiting, too. The Post says there are widespread doubts that the cheque is really in the mail.

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