CALGARY - Athabasca Oil Corporation (TSX: ATH) ('Athabasca' or the 'Company') is pleased to report its 2022 second quarter results with continued significant Free Cash Flow and material deleveraging. Athabasca is uniquely positioned as a low leveraged company generating significant Free Cash Flow through its low?decline, oil weighted asset base.

Q2 Corporate Highlights Production: 33,247 boe/d (92% Liquids) consisting of 26,768 bbl/d in Thermal Oil and 6,479 boe/d (58% Liquids) in Light Oil.

The Company completed a successful turnaround at Leismer in May and is increasing its annual production guidance to 34,000 - 35,000 boe/d (from prior guidance of 33,000 - 34,000 boe/d) based on strong underlying asset performance. Capital Expenditures: $51 million focused on sustaining operations in Thermal Oil.

Record Netbacks: $64.77/boe in Light Oil, $56.78/bbl at Leismer and $53.48/bbl at Hangingstone, supported by strong commodity prices. Record Cash Flow: Record quarterly Adjusted Funds Flow1 of $85 million and Free Cash Flow of $34 million. The Company is now forecasting Adjusted Funds Flow2 of ~$350 million and Free Cash Flow2 of ~$220 million. Continued cash flow expansion is expected through 2023 as described below. Significant Deleveraging: Redeemed $167 million (US$131 million) in Term Debt year to date, achieving 75% of US$175 million debt reduction target which is anticipateto be reached in H1 2023. The Company has low Net Debt of ~$100 million and expects to be in a Net Cash position before year end. Operational Highlights Leismer Development: Current production (22,400 bbl/d in June) is underpinned by the strong ramp up of Pad L8 (5 well pairs) which is producing ~5,500 bbl/d. Strong new well performance, combined with effective use of non?condensable gas co?injection on mature pads, is resulting in current steam oil ratio of 2.8x (June). The Company recently drilled two infill wells a Pad L6 and drilling is underway for another five additional well pairs at Pad L8, with new production expected in 2023. Athabasca plans to grow Leismer's production up to the facility's oil handling capacity by maintaining its current capital cadence. The Company is achieving Profit?to?Investment Ratios (NPV/Investment) of ~10x through this development plan. Hangingstone: Production of ~9,400 bbl/d (June). Non condensable gas co?injection is resulting in reduced energy intensity with the steam oil ratio of 3.8x year to date. Light Oil Duvernay and Montney: Three Duvernay wells at Two Creeks completed in Q1 continue to outperform expectations with IP90s averaging ~610 boe/d (96% Liquids) for each well. The Company has a flexible development portfolio of ~850 gross de?risked Montney and Duvernay wells along with strategic ownership and operatorship of liquids and gas infrastructure.

About Athabasca Oil Corporation

Athabasca Oil Corporation is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. Situated in Alberta's Western Canadian Sedimentary Basin, the Company has amassed a significant land base of extensive, high quality resources. Athabasca's common shares trade on the TSX under the symbol 'ATH'. For more information, visit www.atha.com

Contact:

Matthew Taylor

Chief Financial Officer

President and CEO

E: mtaylor@atha.com

Robert Broen

4038179104

4038179190

E: rbroen@atha.com

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