The company behind the Hangingstone and Dover oil sands projects has reported on its first quarter.
Athababasca Oil Corporation is reporting that it spent more money than it’s bringing in.
It’s reporting a loss of $25.5-million which is $5.8-million deeper compared to last year.
It’s total revenue however tripled from $8.6 million to $31.8-million.
It says half-way through this year it will be drilling well pairs at it’s 12,000 bpd Hangingstone SAG-D Project 1 site.
It plans to submit regulatory approval for Projects 2 and 3 in the next three months, which is expected to increase production over 80,000 bpd.
This quarter it also signed an agreement with Enbridge to ship its diluted bitumen from Project 1. (CLICK HERE for more on that agreement)
At Dover West, it drilled three wells that confirmed it will need the resources to develop the initial 12,000 bpd at it’s SAG-D Dover Project 1.
The Energy Resources Conservation Board scheduled a regulatory hearing that started almost two weeks ago for its Dover Project.
The Fort MacKay First Nation urged the ERCB hearing into the application saying the project will impact the last remaining traditional land on the west side of the Athabasca River.
The project is a 250,000 bpd SAG-D joint venture with PetroChina.
Closing arguments were presented April 29th, and regulatory approval is expected in the next quarter.
Timing of approval is of the essence to Athabasca because it will spark a put/call trading option in the deal.
The site is 95 kilometers northwest of Fort McMurray.
May 2nd, 2013
