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Press release from CNW Group

Alberta Energy Regulator Approves Dover Commercial Project

Tuesday, August 06, 2013

Alberta Energy Regulator Approves Dover Commercial Project

20:51 EDT Tuesday, August 06, 2013

CALGARY, Aug. 6, 2013 /CNW/ -Athabasca Oil Corporation (TSX: ATH) has been informed that the Alberta Energy Regulator (formerly ERCB) panel has approved the Dover Commercial Project subject to approval by the Lieutenant Governor in Council. The approval will be sent to the Alberta government cabinet for their consideration. The Dover Commercial Project is operated by Brion Energy Corporation, an operating company jointly owned by Athabasca and a wholly owned subsidiary of PetroChina.

The in situ Dover Project has the potential to lead to the development and production of approximately 4.1 billion barrels of bitumen (management estimate). Within Alberta, the Dover Project is expected to generate over 30,000 person-years of employment during construction and over 9,000 positions during its operating life. At full production capacity, the Project is expected to create an estimated $5.3 billion of economic activity per year, including over $1.5 billion of annual tax and royalty revenues for local, provincial and federal authorities. Next steps and a detailed timeline for the project are now being developed.

The approval included conditions and recommendations typical of oil sands in situ projects and consistent with the terms and commitments contained in the application for approval.

Athabasca is very appreciative of the substantial efforts of all contributors to this positive outcome - the regulators, the stakeholders and the employees.

About Athabasca Oil Corporation

Athabasca Oil Corporation is a dynamic, Canadian energy company with a diverse portfolio of thermal and light oil assets. Situated in Alberta's Western Canadian Sedimentary Basin, the Company has amassed a significant land base of extensive, high quality resources. With 10.6 billion barrels of bitumen resources (contingent resources, best estimate) and growing light oil production, Athabasca aspires to become a major oil producer. Athabasca's common shares trade on the TSX under the symbol 'ATH'.

Reader Advisory:

This News Release contains forward-looking information that involves various risks, uncertainties and other factors. All information other than statements of historical fact is forward-looking information. The use of any of the words "anticipate," "plan," "continue," "estimate," "expect," "may," "will," "project," "should," "believe," "predict," "pursue" and "potential" and similar expressions are intended to identify forward-looking information. The forward-looking information is not historical fact, but rather is based on the Company's, and its subsidiary, Brion Energy Corporation's ("Brion") current plans, objectives, goals, strategies, estimates, assumptions and projections about the Company's and Brion's industry, business and future financial results. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. No assurance can be given that these expectations will prove to be correct and such forward-looking information included in this News Release should not be unduly relied upon. This information speaks only as of the date of this News Release. In particular, this News Release may contain forward-looking information pertaining to the following: the expected timing of full regulatory approval of the Dover project; the Company's and Brion's capital expenditure programs; the Company's and Brion's plans for, and results of, exploration and development activities; the Company's and Brion's estimated future commitments, business plans, and sanctioning of projects; the Company's and Brion's development of its Dover project; timing of facilities construction and timing of production; the use of in-situ recovery methods such as Steam Assisted Gravity Drainage (SAGD) for production of recoverable bitumen; long term production goals; timing of submission of regulatory applications; estimated timing of first steaming; the Company's and Brion's internal sanction for development of the Dover project; estimated initial and full production of the Dover project; the expected total work force required for the construction and operation of the Dover project; the expected number of jobs to be created by the Dover project; and the expected economic and other benefits to be realized from the Dover project.

With respect to forward-looking information contained in this News Release, assumptions have been made regarding, among other things: the the Brion's ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which Brion conducts and will conduct its business; the applicability of technologies for the recovery and production of the reserves and resources within the Dover project; future capital expenditures to be made by the Company and by Brion; future sources of funding for the Company's and Brion's capital programs; geological and engineering estimates; and the Company's and Brion's ability to obtain financing on acceptable terms.

Actual results could differ materially from those anticipated in this forward-looking information as a result of the risk factors set forth in the Athabasca's most recent Annual Information Form filed on March 27, 2012 ("AIF") that is available on SEDAR at www.sedar.com, including, but not limited to: fluctuations in market prices for crude oil, natural gas and bitumen blend; general economic, market and business conditions; variations in foreign exchange and interest rates; factors affecting potential profitability; factors affecting funding, the priorities of the Company, Brion and of each of their respective current and future joint venture partners; general economic conditions; uncertainties inherent in estimating quantities of reserves and resources; uncertainties inherent in SAGD; the potential impact of the exercise of the Dover put/call options on the Company; failure to meet the conditions precedent to the exercise by the Company of the Dover put option, including failure to obtain necessary regulatory approvals for completion of the Dover put/call option transaction in 2013 or at all; failure to meet development schedules and potential cost overruns; increases in operating costs making projects uneconomic; the effect of diluent and natural gas supply constraints and increases in the costs thereof; gas over bitumen issues affecting operational results; environmental risks and hazards and the cost of compliance with environmental regulations; failure to obtain or retain key personnel; the substantial capital requirements for the Dover project; the need to obtain regulatory approvals and maintain compliance with regulatory requirements; changes to royalty regimes; political risks; risks inherent in Brion's operations, including those related to exploration, development and production of oil sands reserves and resources, including the production of oil sands reserves and resources using SAGD; the potential for management estimates and assumptions to be inaccurate; reliance on third party infrastructure for project facilities; failure by counterparties (including without limitation Phoenix) to comply with contractual arrangements between the Company and such counterparties; the potential lack of available drilling equipment and limitations on access to the Dover project assets; Aboriginal claims; seasonality; hedging risks; insurance risks; claims made in respect of Brion's operations, properties or assets; competition for, among other things, capital, the acquisition of reserves and resources, export pipeline capacity and skilled personnel; the failure of Brion or the holder of certain licenses or leases to meet specific requirements of such licenses or leases. The forward-looking statements included in this News Release are expressly qualified by this cautionary statement. Athabasca does not undertake any obligation to publicly update or revise any forward-looking statements except as required by applicable securities laws.

SOURCE: Athabasca Oil Corporation

For further information:

Media Community
Tammy Yamkowy
Manager, Internal Communications
1-403- 817-8009
tyamkowy@atha.com

Financial Community
Tracy Robinson
Manager, Investor Relations
1-403- 532-7446
trobinson@atha.com

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