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Athabasca Oil Sands Corp. reports $1.48 billion annual net profit
News Articles | Calgary Herald | March 02, 2011
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CALGARY – Athabasca Oil Sands Corp., a developer in northern Alberta without current production, appears to be expanding its asset base to more conventional sources, according to its year end report.
The company on Wednesday said it boosted capital expenditures to $130 million during the fourth quarter from an estimated $18 million.
The bulk of the spending was directed toward purchases of “mineral resource lands in a new area of interest,” AOSC said.
“While it is unclear exactly where the new area is, we believe it is targeting more conventional assets outside of the oilsands,” said analyst Andrew Potter in a morning report. “We expect the company to provide more clarity on its plans for the new area some time in the next six months.”
Calgary-based AOSC has seven oilsands projects on the go, with first steam expected on 2013 at its 100 per cent owned Hangingstone and Dover West Leduc leases.
AOSC reported net income of $1.48 billion, primarily on the February 2010 deal with PetroChina which saw the state-owned corporation buy 60 per cent of its Mackay River and Dover projects.
The gains were offset by $128.9 million in income tax, AOSC said.
“We are the sole owners of our combined Hangingstone asset,” said chief executive Sveinung Svarte. “This gives our employees the opportunity to bring in a modest but important project to demonstrate we can build and develop a (steam assisted gravity drainage) operation on time and on budget. It’s a significant step to continuing to de-risk our bitumen barrels and bring production on-steam as soon as possible.”
The company also announced changes to its 2011-2014 capital spending program, boosting the budget to $2.68 billion and $2.98 billion during the three years on the accelerated development of its Hangingstone and Dover West properties.
Current capital budget for 2011 stands at $302 million.
The combined projects represent between 500,000 to 800,000 barrels of oil per day at peak production, the company said.
“The company has emerged as a major Canadian in situ oilsands developer and performed well, despite the global economic turndown,” said chair Bill Gallacher, in a statement. “Once developed, we expect these resources should provide a reliable, secure and sustainable source of energy for future generations.”
The company said its 2010-2011 winter drilling program included roughly 120 wells being drilled and the acquisition of 60 kilometres of 3-D seismic and 130 km of 2-D seismic.
In 2010 the company launched Canada’s largest and arguably least successful energy initial public offering of $1.26 billion, losing half of its opening $18 per share value within three months.
With its deals and regulatory applications on its projects AOSC has seen share value rise from last fall.
Shares (TSX:ATH) were trading at $16.54 on the Toronto Stock Exchange Wednesday at noon Eastern Time.
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