Athabasca Oil Corporation Announces Receipt of $139 Million from Brion Energy Corporation

CALGARY, ALBERTA--(Marketwired - Aug. 29, 2016) - Athabasca Oil Corporation (TSX:ATH) ("Athabasca" or "the Company") announces that it has received payment of $139 million from Phoenix Energy Holdings Limited (now Brion Energy Corporation, "Brion"), being the principal and interest payable under the final promissory note issued to the Company by Brion. The promissory note relates to Athabasca's prior sale of its 40% interest in the Dover oil sands project to Brion, which closed on August 29, 2014.

Throughout 2016, Athabasca has significantly strengthened its balance sheet through its Light Oil joint venture with Murphy Oil Company ("Murphy") and the Thermal Oil Contingent Bitumen Royalty granted to Burgess Energy Holdings L.L.C. Total consideration from these transactions was $615 million, including cash proceeds of $396 million. The Company has also reduced its outstanding corporate debt by approximately $250 million by repaying its US$221 million Term Loan and unwinding its US dollar foreign exchange hedge.

The Company currently has approximately $608 million in available cash and cash equivalents, an $83 million net cash position and maintains an undrawn $45 million revolving credit facility. Liquidity is further supported by the remaining $214 million Duvernay capital carry balance whereby Murphy will fund 75% of the Company's 30% working interest on the first $1 billion of investment ($75 million net exposure) over the next four to five years in this play.

About Athabasca Oil Corporation

Athabasca Oil Corporation is a Canadian energy company with a focused strategy on the development 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. Athabasca's common shares trade on the TSX under the symbol "ATH". For more information, visit www.atha.com.