November 19, 2017

ATHABASCA OIL CORPORATION
Athabasca Oil Corporation Announces 2016 Year-end Results and Reserves

March 13, 2017

Athabasca Oil Corporation (TSX:ATH) ("Athabasca" or the "Company") is pleased to provide its 2016 year-end financial and operating results.

2016 was a transformational year for Athabasca which established itself as an intermediate oil weighted producer with a funded five-year growth outlook and exposure to several of the largest resource plays in Western Canada including the Montney, Duvernay and oil sands.

2016 AND RECENT HIGHLIGHTS

  • 2016 operational results
    • Production of 11,981 boe/d (81% liquids), in line with guidance of 11,800 boe/d.
    • Capital expenditures of $122 million, with $111 million directed towards Light Oil growth.
  • Established a new core Montney growth area at Placid (70% working interest)
    • Following a successful appraisal program, Athabasca commenced a winter drilling program with 10 wells rig released by year end 2016 and 20 gross wells expected to be drilled by April 2017.
    • Commenced construction of a new oil battery in Q3 2016 that will be connected to Athabasca operated regional infrastructure and is expected to be commissioned in April 2017.
  • $486 million light oil joint venture driving funded growth in the Duvernay (30% working interest)
    • Athabasca completed a $486 million joint venture with Murphy Oil in May 2016 which secures $1 billion of gross investment in the Duvernay over the next four years while minimizing Athabasca's near term capital exposure ($75 million net).
  • Acquired top tier thermal assets from Statoil for $578 million (5.8x P/CF & $24,000/bbl/d)
    • In December 2016, Athabasca announced the acquisition of Statoil's Thermal oil assets for $431 million cash, 100 million common shares and at prices above US$65/bbl WTI annual contingent value payments ending in 2020. The acquisition immediately drives a larger cash flow base and accelerates the Company's transition to sustainable free cash flow generation which is expected in 2018 at strip prices.
  • Strong reserve additions resulting in 210% Proved plus Probable per share growth
    • Athabasca has increased its Proved plus Probable reserves to 1,120 mmboe through the acquisition of the Leismer and Corner properties and a successful light oil drilling program.
  • Monetized long dated thermal oil resources for $397 million
    • Athabasca raised $397 million through a series of royalty transactions with Burgess Energy. The royalties are structured with a sliding scale and ensure the assets are not encumbered at lower prices with the first 2% royalty triggered at approximately US$75/bbl WTI. There are no commitments for future development.
  • Solidified the balance sheet and long-term funding position
    • In early 2017, Athabasca completed a comprehensive refinancing transaction which included the issuance of US$450 million senior secured second lien notes due in 2022 and the establishment of a new $120 million reserve based credit facility.
    • Athabasca is well positioned with net debt of approximately $335 million and approximately $365 million of cash. The Company has multi-year funding certainty and a strong liquidity outlook that will allow the Company to continue to advance its strategic objectives.
    • The Company has hedged 12,000 bbl/d at C$52.70/bbl WCS and intends to hedge a minimum of 20,000 bbl/d for the balance of 2017.

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