Cretaceous Oilsands Holdings to buy MacKay River project
Cretaceous Oilsands Holdings, which is owned by PetroChina International Investment, is to buy Athabasca Oil Sands' stake in MacKay River operations.
The company will pay $680 million (£434.4 million) cash for the 40 per cent interest in the project after Athabasca returns money borrowed from Cretaceous.
President and chief executive officer of Athabasca Sveinung Svarte said: "Since creating [a] joint venture with Cretaceous in February 2010 and until our exercise of the put option, Athabasca has grown and diversified."
When the firm sells its stake in the MacKay River project, its budget for this year will fall by around $190 million and the board decided to go ahead with the transaction because they believe resources can be better used elsewhere.
Mr Svarte revealed the business aims to produce up to 10,000 barrels of oil equivalent per day by the end of 2012.
At the close of trade yesterday, shares in Athabasca Oil Sands had increased by one per cent, according to Google finance.
Posted by Ron Maverick
Source: Athabasca Oil Sands press release, January 3rd