BUZZ-Athabasca Oil rises the most in 2 months on royalty deal, lower debt

Mon Jun 20, 2016 11:09am EDT
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** Canadian oil producer's shares rise as much as 12 pct to C$1.435 - biggest intraday percentage gain in 2 months

** Company to sell royalty on its bitumen production from thermal heavy oil assets to Burgess Energy for C$129.5 mln

** Athabasca cuts debt by about C$250 mln, or 30 pct, by repaying $221 mln term loan from sale proceeds

** Royalty structured such that assets won't be encumbered at lower pricing levels, Athabasca says, and deal implies royalty payments to not start until US crude hits $75/bbl

** Up to Friday's close, stock had fallen about 38.5 pct in 12 months