Athabasca Oil Corporation Announces New $500 Million Four-Year Credit Facility and Expanded Duvernay Energy Credit Facility

The June 1, 2026 release announces: - A new $500 million covenant‑based credit facility with a 4‑year term (maturing May 2030) and annual extension rights, replacing previous undrawn lines. - Duvernay Energy’s reserve‑based facility upsized to $75 million. - Pro forma consolidated liquidity rises to approximately $870 million, versus $406 million at March 31, 2026. - Net cash position of $60 million as of March 31, 2026 is unchanged; the new facility is undrawn at closing. - Purpose: fund the Thermal Oil growth plan to >60,000 bbl/d by 2030 and Duvernay’s expanded 2026 program.

The announcement is material and positive because: - It dramatically expands committed liquidity (from ~$115 million undrawn to $575 million of new facilities) at a lower cost of capital, eliminating any refinancing risk through 2030. - It de‑risks the balance sheet at a pivotal moment: the company is mid‑way through its $300+ million Leismer expansion and preparing to sanction the Corner Phase 1 project (15,000 bbl/d). The new facility ensures growth can be funded internally even if oil prices weaken temporarily, without equity dilution. - The vote of confidence from the Canadian bank market underscores the strength of Athabasca’s reserves and cash‑flow profile. - It aligns with management’s repeated promise to maintain a best‑in‑class balance sheet, now fortified to a level not previously signaled (previous liquidity was ~$400–450 million; none of the historical news previewed a $500 million facility). - The news reinforces the outlook after the strong Q1 2026 results (May 6, 2026) that raised 2026 adjusted funds flow guidance to $550–$575 million and showed net cash. - It does not disrupt the 100%‑of‑free‑cash‑flow buyback policy; instead, it provides a backstop that allows buybacks to continue while growth is executed.

Therefore, the announcement is likely to be seen by the market as a de‑risking event supporting a higher valuation multiple.

Athabasca Oil Corporation is a Canadian intermediate producer focused on long‑life thermal oil assets (SAGD) in Alberta’s Athabasca region and light oil in the Duvernay shale. The flagship project is the Leismer SAGD expansion, targeting 40,000 bbl/d by late 2027 (current ~28,000–30,000 bbl/d). The company also holds the Corner asset (353 mmbbl 2P reserves, 520 mmbbl contingent resources) whose Phase 1 (15,000 bbl/d) is expected to be sanctioned in H2 2026. Duvernay Energy, a subsidiary, produced 4,613 boe/d in Q1 2026 and is targeting >15,000 boe/d by 2030. The combined growth pipeline positions Athabasca for >60,000 bbl/d of thermal oil and total production well above 75,000 boe/d by 2030.