Athabasca Slave Point Joint Venture Information Memorandum

September 2014
Athabasca Oil Corporation
Information Memorandum - Joint Venture Opportunity
Athabasca Oil Corporation ("Athabasca") has initiated a process to explore strategic transactions on lands
prospective for Slave Point light oil development and has retained Peters & Co. Limited ("Peters & Co.") as its
financial advisor to assist in this process. Data-rooms will be open September 4, 2014. Strategic transaction
proposals will be due October 15, 2014.
Athabasca is soliciting proposals for the joint venture or farmout of its Caribou light oil properties in northern Alberta
(the "Assets"). Continued drilling is required to further delineate the assets and retain the core development
acreage in order to advance to full scale development.
Athabasca Overview
R23
R22
R21
T121
T120
R20
R19
R18
R17
R16
R15
R14
R13W5
Athabasca Land
Athabasca Wells
T119
T118
T117
T116
T115
T114
T113
T112
T111
T110
Highlights
L arge Scale and Contiguous Land Base: 100%
working interest in over 1,000 sections of land that are
prospective for Slave Point light oil development:
Internal estimates indicate that a development project
of 10,000 to > 35,000 Bbls/d is achievable by utilizing
only 10% to 15% of the current land base.
R elevant Technical Data: Athabasca has access
to 2,169 km of 2D seismic data, 319 km of which is
proprietary data, along with well cores from its initial
three well program:
T he core data compares very well to the most
productive regions of the Evi/Otter Slave Point
development areas.
Proven Resource: Preliminary drilling and subsequent
swab tests by Athabasca on the land base have proven
the presence of light oil.
Significant OOIP: Initial OOIP estimates on the Slave
Point platform indicate ~10 MMBbls/section.
Relatively Shallow Depth: The Slave Point formation
at Caribou is located at ~900 m TVD as compared to
~1,500 m in the Evi/Otter area.
Table of Contents
Highlights. . . . . . . . . . . . .
Land and Seismic . . . . . .
Area Infrastructure. . . . . .
Slave Point Regional
Geology. . . . . . . . . . . . . .
Caribou Slave Point
Geology. . . . . . . . . . . . . .
T109
T108
1
2
3
4
5
Caribou Slave Point
Light Oil Resource and
Development. . . . . . . . . . . 6
Sale Process and
Contacts . . . . . . . . . . . . . . 7
Disclaimer. . . . . . . . . . . . . 8
Peters & Co. Limited 2300 Jamieson Place 308 Fourth Avenue SW Calgary, Alberta, Canada T2P 0H7 www.petersco.com
Steve R. Woima
Principal, Head Acquisitions & Divestitures
(403) 261-2264 [email protected]
J.G. (Jeff) Lawson
Principal, Corporate Finance
(403) 261-2298 [email protected]
Franklin P. Eldridge
Associate, Acquisitions & Divestitures
(403) 261-2287 [email protected]
Callum J. Moore
Associate, Corporate Finance
(403) 261-2217 [email protected]
This Information Memorandum is prepared solely for the use of certain qualified Interested Parties to provide information only. The information
contained herein, while obtained from sources that we believe to be reliable, is not guaranteed as to its accuracy or completeness. This information
summary is for information purposes only and does not constitute an offer to sell or a solicitation to buy securities of Athabasca Oil Corporation.
Athabasca Oil Corporation | Joint Venture | Information Memorandum | September 2014
Land and Seismic
Athabasca Land
R1W6
R23
R22
R21
R20
R19
R18
R17
R16
R15
T123
R14
R13
R12W5
Athabasca Land
Trade 2D
Proprietary 2D
Athabasca Wells
Slave Point Penetration
T122
L a r g e , C o n t i g u o u s
Land Base: 100%
working interest in over
1,000 sections of land
T121
that are prospective
for Slave Point light oil
T120
development.
Expiries: There are two
drilling seasons before
T119
the majority of the land
expiries come into effect,
T118
allowing ample time to
secure elongated tenure
T117
on the core development
area.
T116
Crown Land: All of the
lands are leased crown,
T115
allowing for favorable
royalty rates related to
horizontal development
T114
drilling. The lands are
primary term licenses
T113
that can be validated by
on or off license drills.
T112
Significant Seismic
Data: Athabasca has
T111
access to 2,169 km of 2D
seismic data, 319 km of
T110
which is proprietary data.
Land Summary
Expiry
Year
Seismic Summary
Gross
Hectare's
Net
Hectare's
Gross
Sections
Net
Sections
Average
WI
2015Expiry
2016Expiry
2017Expiry
11,264
257,728
7,936
11,264
257,728
7,936
44.0
1,006.8
31.0
44.0
1,006.8
31.0
100%
100%
100%
2DTrade
Total
276,928
276,928
1,081.75
1,081.75
100%
Total
Peters & Co. Limited | www.petersco.com
SeismicType
2DProprietary
Length(km)
1,850
319
2,169
2
Athabasca Oil Corporation | Joint Venture | Information Memorandum | September 2014
Area Infrastructure
Infrastructure
R8
R7
R6
R5
R4
R3
R2
R1W6
R23
R22
R21
R20
R19
R18
R17
R16
T123
T122
Existing Rail
Terminal
T121
T120
R15
R14
R13
R12
R11W5
Athabasca Land
Athabasca Wells
All Wells
Strategic Oil Pipeline
Pembina Pipeline
NOVA Pipeline
Primary Road
Rail Line
T119
Future Athabasca
RailTerminal
T118
T117
T116
T115
H
ig
hw
a y 35
T114
T113
T112
T111
Highway 58
T110
Primary Highway Proximity: Highway 35 offsets the Caribou asset base, providing access for equipment
and the transportation of production in the absence of pipelines.
Offsetting Industry Developments: Oil development activities in the Steen River area to the north of Caribou
will provide the incentive to build and expand oil transportation networks in the region.
Rail Transport: Athabasca's long term transportation plans for the Caribou area could include a future rail
terminal to move oil out of the area.
Fit for Purpose Infrastructure: The relative lack of infrastructure in the area provides an opportunity to create
an infrastructure network that is tailor made for the specific needs of the Caribou project. Internal estimates
suggest that a 1,000 Bbls/d project would support the construction of a year round access road.
Peters & Co. Limited | www.petersco.com
3
Athabasca Oil Corporation | Joint Venture | Information Memorandum | September 2014
Slave Point Regional
Geology
Regional Slave Point Production Trend Map
Devonian Paleogeography
CARIBOU
OTTER
New Slave Point Light Oil Resource Fairway: Athabasca
is seeking a joint venture partner to develop an emerging
Slave Point light oil resource play fairway in the Caribou area
of northern Alberta.
Comparable to the Otter Slave Point: The Slave Point
at Caribou is relatively shallow, at 900 m TVD, with similar
reservoir parameters to the successful Slave Point horizontal
light oil development ongoing in the Evi/Otter area to the south.
Slave Point average oil saturations in the Caribou area
are 32% relative to the 22% average in the Evi/Otter area,
based on core analysis.
Caribou to Otter Slave Point Stratigraphic Section
A
OTTER
5-21-88-12W5
ATHABASCA
12-16-118-19W5
SLAVE POINT
1550
Slave Point
Hz Oil
Aʹ
Thick Slave Point Reservoir:
950
40 m
25 m
1600
DATUM
FORT VERMILLION
At Caribou, the Slave Point
is approximately 40 meters
in gross reservoir thickness
with limestone porosity ranging
upward to 15%.
15 0
D/N POROSITY % (LST)
Peters & Co. Limited | www.petersco.com
WATT MOUNTAIN
15 0
D/N POROSITY % (LST)
4
Athabasca Oil Corporation | Joint Venture | Information Memorandum | September 2014
Caribou Slave Point
Geology
Caribou Slave Point Production Trend and Development Map
Northern Slave Point Core Comparison
CaribouvsEviOtter/RedEarth/SawnLake
KMax
100
Emerging Resource Play Fairway: Recent Athabasca drilling
has established a new Slave Point light oil resource fairway with
potential for 1.5 billion barrels of OOIP on held lands.
Significant Light Oil Resource: New core and test data
supports the potential of 10 MMBbls of light oil (33° to 34° API)
in place per section within the established fairway.
Evi/Red Earth/SawnLake
6.0%Porosity;3.2md
12-16Platform
10%Porosity;0.82md
10
1
Sawn Lake
Evi Otter
Red Earth
Sawn Lake Mean
Evi Otter Mean
Red Earth Mean
AOC 12-16 Platform Mean
AOC Core
0.1
0.01
0
0.05
0.1
Porosity
0.15
0.2
0.25
16-8-116-22W5
ATHABASCA
12-16-118-19W5
11-11-119-22W5
ATHABASCA
3-26-118-18W5
ATHABASCA
4-3-118-17W5
Bʹ
900
2-36-112-22W5
SLAVE POINT
1000
B
1
Caribou Slave Point Stratigraphic Section
FORT VERMILION
15 0
D/N POROSITY % (LST)
Peters & Co. Limited | www.petersco.com
15 0
D/N POROSITY % (LST)
0
15 0
D/N POROSITY % (LST)
15 0
D/N POROSITY % (LST)
15 0
D/N POROSITY % (LST)
DATUM
950
1150
950
1050
900
?
15 0
D/N POROSITY % (LST)
5
Athabasca Oil Corporation | Joint Venture | Information Memorandum | September 2014
Caribou Slave Point
Light Oil Resource and Development
Caribou Slave Point Production Trend and Development Map
Well Test Summary
Slave Point Oil Tested: Light oil was recovered on a 3m3 bull
headed acid job, via swab testing, from two vertical Slave Point
wells Athabasca drilled in early 2013.
Ongoing Drilling Program: Preparing for a 6 well Winter 2014/2015
drilling program, incorporating 2 vertical and 4 horizontal wells,
designed to establish the extent of the Slave Point Caribou area
light oil resource fairway, maximize days on production and confirm
commerciality associated with horizontal development.
Swab (# Swabs)
Swab
(Final Daily Rate)
API
12-16-118-19W5
4-3-118-17W5
41
42
65.4 Bbls/d Oil
3.1 Bbls/d Oil
97.5 Bbls/d Water 159.1 Bbls/d Water
34.4
33.0
Dark Brown
Dark Brown
Wax Content
11.50%
14.30%
H2S
1.20%
1.25%
Still building
after 2 hours
10.1 kPa/m
Oil Colour
Static Gradient
Athabasca Slave Point Stratigraphic Section
12-16-118-19W5
3-26-118-18W5
4-3-118-17W5
SLAVE POINT
Cʹ
950
950
900
C
Peters & Co. Limited | www.petersco.com
FORT VERMILION
950
15 0
D/N POROSITY % (LST)
Final Rate
65 Bbls/d
34% Oil Cut
DATUM
15 0
D/N POROSITY % (LST)
15 0
D/N POROSITY % (LST)
6
Athabasca Oil Corporation | Joint Venture | Information Memorandum | September 2014
Sale Process and Contacts
Athabasca Oil Corporation ("Athabasca" or the "Company") has retained Peters & Co. Limited ("Peters & Co.")
as its financial advisor to coordinate all aspects of this joint venture process and Peters & Co. will act as the
sole contact for all parties who have expressed an interest ("Interested Parties"). An online virtual data room
has been established, which provides a comprehensive technical description of Athabasca's core property and
exploration prospect, as well as detailed operational and financial information.
Athabasca and Peters & Co. expressly reserve the right at any time to amend or terminate this joint venture
procedure, to decline to permit an Interested Party to participate in the process, to terminate discussions with any or
all Interested Parties, to reject any or all offers, or to negotiate with any party with respect to a possible transaction.
The virtual data room is open to Interested Parties that have executed a confidentiality agreement in
the form provided.
Joint venture proposals will be due October 15, 2014.
Contacts
Peters & Co. will act as the sole contact for all Interested Parties. The directors, officers and employees
of Athabasca should not be contacted directly. All communications and inquiries from Interested Parties
should be directed to one of the representatives listed below:
Peters & Co. Limited
Peters & Co. Limited | www.petersco.com
J.G. (Jeff) Lawson
Principal, Corporate Finance
(403) 261-2298 [email protected]
Steve R. Woima
Principal, Head Acquisitions & Divestitures
(403) 261-2264 [email protected]
Callum J. Moore
Associate, Corporate Finance
(403) 261-2217 [email protected]
Franklin P. Eldridge
Associate, Acquisitions & Divestitures
(403) 261-2287 [email protected]
Philippe P. Bégin
Analyst, Corporate Finance
(403) 261-2279 [email protected]
Mike A. Sado
Analyst, Acquisitions & Divestitures
(403) 261-2297 [email protected]
2300 Jamieson Place 308 Fourth Avenue SW Calgary, Alberta, Canada T2P 0H7
Fax: (403) 261-7565 | www.petersco.com
7
Athabasca Oil Corporation | Joint Venture | Information Memorandum | September 2014
Disclaimer
This Information Memorandum is based on information provided by Athabasca from its own records and from
other sources. The Information Memorandum is being distributed, on behalf of Athabasca, by Peters & Co., the
Company's financial advisor, solely for the use by certain qualified Interested Parties. The sole purpose of the
Information Memorandum is to assist Interested Parties in determining whether or not to proceed with further
investigation of a potential joint venture ("Transaction").
The information contained herein (the "Information") has been prepared in good faith to assist Interested
Parties in completing their own independent evaluation of the assets, but does not purport to be all inclusive
or to contain all of the information that an Interested Party may desire or that may be required by an Interested
Party to properly evaluate a potential Transaction. In all cases, the Interested Parties should conduct their own
independent investigation and analysis of the assets and the data set forth in this Information Memorandum.
Peters & Co. has not independently verified any of the Information contained herein. Neither Peters & Co., the
Company nor their respective affiliates make any representation or warranty (expressed or implied) as to the
accuracy or completeness of this Information Memorandum.
Neither Peters & Co., the Company nor their respective affiliates will assume any liability for the Interested
Parties' use of this Information Memorandum or any other oral, written or other communication transmitted to
the Interested Parties during the course of its evaluation of the assets.
Athabasca and Peters & Co. expressly disclaim any and all liability and responsibility for and associated with
the quality, accuracy, completeness or materiality of the Information.
The Interested Party will conduct its own independent evaluation and analysis of the Information and satisfy itself
as to the quality, accuracy, completeness and materiality of the same. The Interested Party will rely solely on its
own independent evaluation and analysis of the Information when deciding whether or not to submit a bid, enter
into a definitive joint venture agreement and consummate a Transaction.
This Information Memorandum may include certain statements, estimates, forecasts and projections provided
by and with respect to the anticipated future performance of the assets. Such statements, estimates, forecasts
and projections reflect various assumptions made by the Company and/or Peters & Co. concerning anticipated
results, which may or may not prove to be correct. No representations or warranties are made as to the accuracy
of such statements, estimates, forecasts or projections. The only Information that will have any legal effect will
be that specifically represented or warranted in a definitive purchase agreement, when, as and if executed,
with respect to a possible Transaction and executed on behalf of the Company and the purchaser or investor.
NEITHER THIS INFORMATION MEMORANDUM NOR ITS DELIVERY TO AN INTERESTED PARTY SHALL CONSTITUTE OR
BE CONSTRUED TO BE AN OFFER TO SELL ANY SECURITIES OF THE COMPANY. THIS INFORMATION MEMORANDUM
SHALL NOT BE DEEMED AN INDICATION OF THE STATE OF AFFAIRS OF THE COMPANY NOR CONSTITUTE ANY
INDICATION THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE COMPANY SINCE THE
DATE HEREOF.
Peters & Co. Limited | www.petersco.com
8