Athabasca Oil Corp. closed the sale of its Leismer oil sands infrastructure assets to an Enbridge Inc. subsidiary for C$265 million in cash.
Athabasca Oil in December 2018 agreed to sell its Leismer pipelines and Cheecham storage terminal to Enbridge Pipelines (Athabasca) Inc. The deal also includes an upgrade of Athabasca Oil's credit terms with Enbridge across the thermal oil business, in which the companies have a partnership.
The deal proceeds are equivalent to about 50% of Athabasca Oil's market capitalization and are expected to boost the company's liquidity and reduce net debt, according to a Jan. 15 news release.
Athabasca Oil develops thermal oil and light oil assets, with operations focused in Alberta's Western Canadian Sedimentary Basin. Calgary, Alberta-based Enbridge operates crude oil, liquids and natural gas pipelines, among other energy infrastructure businesses.