Athabasca Oil has completed the acquisition of Statoil’s entire oil sands operations in the Canadian province of Alberta.
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Statoil has received C$431m ($329m) in cash in addition to 100 million common shares in Athabasca, which represents just below 20% of the equity in the company.
The divestment comprises the producing Leismer demonstration plant and the undeveloped Corner project, in addition to a number of midstream contracts associated with Leismer’s production.
Statoil’s share position will be managed as a financial investment.
Around an additional C$250m ($191m) of contingent payments will be paid out over the next four years, depending on production levels and the oil price.
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By GlobalDataIn December 2016, Athabasca Oil entered into agreements with Statoil and its wholly owned subsidiary Statoil Canada to acquire its Canadian Thermal Oil assets.
Athabasca president and CEO Robert Broen said: “This transaction is transformational for Athabasca and establishes scale with top tier thermal assets and people.
"We are pleased to have Statoil, a global energy leader, as an investor in the company. Shareholders are positioned with a unique and compelling return proposition. Athabasca has the financial strength to drive oil weighted growth at competitive metrics in the current environment.”
This purchase establishes Athabasca as an intermediate oil weighted growth company with a production base of approximately 40,000boe/d.
The Leismer project was commissioned in 2010 with current production of approximately 24,000bbl/d.
The Leismer and Corner leases have received regulatory approval for future development phases up to a combined 80,000bbl/d.
Image: The Leismer facility in Alberta, Canada. Photo: courtesy of Lawrence Sauter / Statoil ASA.
