Calgary-based Athabasca Oil buys oilsands assets from Norwegian firm in deal worth up to $832M

Business

Calgary-based Athabasca Oil Corp. (TSX:ATH) is buying the northern Alberta oilsands operations of Norwegian oil giant Statoil ASA in a deal worth up to $832 million.

The sale includes Statoil’s six-year-old Leismer thermal oilsands project, which uses steam to produce 24,000 barrels per day of bitumen from wells, and its proposed Corner oilsands project.

Statoil says Athabasca has agreed to pay $435 million in cash plus issue 100 million Athabasca shares worth about $147 million.

Up to $250 million more will be paid in a series of contingent payments triggered if West Texas Intermediate oil prices rise above US$65 per barrel.

Statoil vice-president Lars Christian Bacher says the deal will allow it to focus on core activities including its operations offshore Newfoundland.