Athabasca Oil Sands Corp
Encyclopedia
Athabasca Oil Sands Corp (AOSC) is a Canadian oil company based in Calgary
, Alberta
. The company owns or has interests in leases in the Athabasca oil sands
of northeastern Alberta.
, but does not operate any commercial developments. As of June 2010, the company's reserves included an estimated 8.6 Goilbbl of contingent resource (potentially recoverable oil) and 114 Moilbbl of probable reserves. AOSC sold 60% of two assets, included above, to PetroChina
in 2009.
AOSC intends to produce oil through the steam-assisted gravity drainage (SAGD) method rather than through open-pit mining
as older oil sands mines have. SAGD projects require less surface area than open-pit, but must consume additional energy for steam generation.
(IPO) in early 2010 was the largest Canadian IPO since that of Manulife Financial
in 1999, and North America's largest in 2010 (as of March 31). The sale, selling a 19% stake at per share, valued the company at around .
The IPO's initial success was attributed in part to AOSC's 2009 asset sale to PetroChina
, divesting 60% working interest in its Mackay River and Dover projects for .
Following the IPO, AOSC's share price dropped 33% in the first month of trading, making it Canada's worst-performing IPO since 2007.
Calgary
Calgary is a city in the Province of Alberta, Canada. It is located in the south of the province, in an area of foothills and prairie, approximately east of the front ranges of the Canadian Rockies...
, Alberta
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
. The company owns or has interests in leases in the Athabasca oil sands
Athabasca Oil Sands
The Athabasca oil sands are large deposits of bitumen, or extremely heavy crude oil, located in northeastern Alberta, Canada - roughly centred on the boomtown of Fort McMurray...
of northeastern Alberta.
Operations
As of December 2009, Athabasca Oil Sands Corp owns leases and permits on 1570000 acres (6,353.6 km²) in the Athabasca oil sandsAthabasca Oil Sands
The Athabasca oil sands are large deposits of bitumen, or extremely heavy crude oil, located in northeastern Alberta, Canada - roughly centred on the boomtown of Fort McMurray...
, but does not operate any commercial developments. As of June 2010, the company's reserves included an estimated 8.6 Goilbbl of contingent resource (potentially recoverable oil) and 114 Moilbbl of probable reserves. AOSC sold 60% of two assets, included above, to PetroChina
PetroChina
PetroChina Company Limited is a Chinese oil company and is the listed arm of state-owned China National Petroleum Corporation , headquartered in Dongcheng District, Beijing. It is China's biggest oil producer, and was the world's most valuable company by market value as of September 28th 2010...
in 2009.
AOSC intends to produce oil through the steam-assisted gravity drainage (SAGD) method rather than through open-pit mining
Open-pit mining
Open-pit mining or opencast mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow....
as older oil sands mines have. SAGD projects require less surface area than open-pit, but must consume additional energy for steam generation.
Ownership
The company's highly-anticipated initial public offeringInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO) in early 2010 was the largest Canadian IPO since that of Manulife Financial
Manulife Financial
Manulife Financial Corporation , is a Canadian insurance company and financial services provider. Manulife Financial's global head office is located in Toronto, Canada and the Company has operations in 21 countries and territories worldwide.The Company operates in Canada and Asia through the brand...
in 1999, and North America's largest in 2010 (as of March 31). The sale, selling a 19% stake at per share, valued the company at around .
The IPO's initial success was attributed in part to AOSC's 2009 asset sale to PetroChina
PetroChina
PetroChina Company Limited is a Chinese oil company and is the listed arm of state-owned China National Petroleum Corporation , headquartered in Dongcheng District, Beijing. It is China's biggest oil producer, and was the world's most valuable company by market value as of September 28th 2010...
, divesting 60% working interest in its Mackay River and Dover projects for .
Following the IPO, AOSC's share price dropped 33% in the first month of trading, making it Canada's worst-performing IPO since 2007.