Athabasca Oil Sands to Sell Remaining 40% Interest in MacKay River Oil Sands Project to Cretaceous Oilsands - Debt and Cash Management Step by Athabasca - Deal Analysis from GlobalData

Summary

Athabasca Oil Sands Corporation (Athabasca Oil Sands), an oil sands company, agreed to sell its remaining 40% interest in the MacKay River oil sands project in northern Alberta to Cretaceous Oilsands Holdings Limited (Cretaceous), a wholly-owned subsidiary of PetroChina International Investment Limited (PetroChina), for a cash consideration of CAD 680m ($666.46m). This is subject to closing adjustments, including Athabasca's repayment of two loans provided by Cretaceous.

The divestment will enable Athabasca Oil Sands to enhance its long-term prospects, allowing the company to deploy its capital and resources into other development projects, and achieve approximately 50% of its production from its oil sands division and the balance from the light oil division.

Scope

- Rationale behind Athabasca Oil Sands Corporation selling remaining 40% stake in Mackay River Oil Sands Project to PetroChina
- Stratigic benefits for the companies involved in the transaction
- Geography covered - Canada

Reasons to buy

- Develop a sound understanding of the major acquisition, M&A's, Partnerships, and Joint Ventures taking place in Canada's oil and gas industry
- Identify the most lucrative segments to leverage on the growth oppurtunities available in the Canada's oil sands market
- Get a detailed analysis of the deal to enable you to take better decisions

1 Table of Contents
1 Table of Contents 1
1.1 List of Tables 1
1.2 List of Figures 1
2 Athabasca Oil Sands to Sell Remaining 40% Interest in MacKay River Oil Sands Project to Cretaceous Oilsands 1
2.1 Deal Overview 1
2.2 Deal in Brief 1
2.3 Background of the Deal 1
2.4 Athabasca Oil Sands Selling its 40% Stake in the MacKay Joint Venture to Increase Cash Flow and Reduce Interest Burden 2
2.5 PetroChina is Expanding its Operations Globally 4
2.6 Deal Financials and Valuations 6
3 Appendix 7
3.1 Methodology 7
3.2 Contact Us 8
3.3 Disclaimer 8

List of Tables
Table 1: Athabasca Oil Sands, Asset Transactions, 2009 - January 3, 2012 3
Table 2: PetroChina and Subsidiaries, Investments, 2009 - 2011 5
Table 3: Companies Involved 6
Table 4: Financials of the Deal 6
Table 5: Target Information 6
Table 6: Acquirer Information 6
Table 7: Vendor Information 6

List of Figures
Figure 1: Athabasca Oil Sands, Canada, Cash and Interest, CAD millions, 2010 Q2 – 2011 Q3 2
Figure 2: Athabasca Oil Sands, Canada, Key Oil Sands Areas, 2011 3
Figure 3: Toronto Stock Exchange, Athabasca Oil Sands, Share Price, April 08, 2010 - January 09, 2012 4