"Athabasca Oil Corp. (ATH), a Canadian crude producer, has signed a letter of intent to pursue a joint venture for its Hangingstone and Birch properties as the company seeks to develop its oil-sands assets and boost output.
Athabasca didn’t comment on the size of the potential transaction or its partner in a statement today. Athabasca’s shares were halted in Toronto earlier today following a report in The Globe and Mail that Kuwait Petroleum Corp. may invest as much as C$4 billion ($4.05 billion) for a joint venture to develop Athabasca Oil’s assets in Alberta.
The Calgary-based oil producer, which already cooperates with PetroChina Co. (857), has been looking for partners to accelerate its plans to boost output to 220,000 barrels a day by 2020. Chief Executive Officer Sveinung Svarte said on a July 26 conference call that he expected a joint-venture deal to be announced in the third quarter.
'Athabasca does not intend to make any further announcements or communications regarding this potential transaction until either a definitive agreement has been reached or it determines that disclosure of developments is appropriate,' the Calgary-based company said in the statement."