Canadian oil producer Athabasca Oil Corp said it planned to spend 42 percent less in 2014 to develop its assets, as it awaits government approval for its Dover project.

The company, an oil sands and unconventional oil developer, holds 40 percent of the Dover project in Alberta, while PetroChina Co Ltd holds the rest.

Athabasca has the option of exercising a $1.32 billion put option with PetroChina once the Dover project is approved.

Athabasca had warned in October that it could cut its budget, sell light oil assets or incur more debt if approval on the Dover project was denied. ()

The company on Tuesday said it will spend C$460 million ($435 million) in 2014 - C$348 million for developing thermal oil assets and C$106 million for light oil assets. The remaining money will be used for corporate expenses.

Athabasca had said last year it would spend C$798 million to develop its oil assets in Alberta in 2013, and finance capital costs through cash-on-hand, debt and cash flow from production.
Source: Reuters

DiscoverWeyburn.com is Weyburn's only source for community news and information such as weather and classifieds.