CALGARY - Athabasca Oil Corporation (TSX: ATH) ('Athabasca' or the 'Company') is pleased to report its 2022 third quarter results with record Adjusted Funds Flow, strong 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.

Q3 Corporate Highlights

Production: 37,240 boe/d (93% Liquids) consisting of 31,023 bbl/d in Thermal Oil and 6,217 boe/d (57% Liquids) in Light Oil. The Company is on track to exceed its increased annual production guidance of 34,000 - 35,000 boe/d, based on strong underlying asset performance.

Record Cash Flow: Record Adjusted Funds Flow1 of $102 million and Free Cash Flow of $50 million.

Netbacks: $39.25/bbl in Thermal Oil ($41.73/bbl at Leismer and $33.70/bbl at Hangingstone) and $38.76/boe in Light Oil ($48.11/boe at Kaybob and $29.82/boe at Placid).

Capital Expenditures: $52 million primarily focused on sustaining operations at the Leismer asset in Thermal Oil.

Significant Deleveraging: Redeemed $223 million (US$172 million) in Term Debt year to date, including $65 million (US$48 million) in and subsequent to the third quarter. The Company has been steadfast on its balance sheet commitments and has achieved 98% of its US$175MM debt reduction target, demonstrating the significant Free Cash Flow generation of Athabasca's business. The Company has low Net Debt of ~$65 million and forecasts a Net Cash position in 2023 onwards.

Strong Liquidity: $278 million of Liquidity, inclusive of $200 million of Cash at the end of Q3.

Operational Highlights

Leismer: Q3 production averaged 22,309 bbl/d with a 2.8x SOR supported by strong rates from the new Pad 8 (5 well pairs). The Company recently placed two additional infill wells on production at Pad L6 and rig released an additional five well pairs at Pad L8 that are expected to be on production in H1 2023. Athabasca has estimated Profit?to?Investment Ratios (NPV/Investment) of ~10x on recent sustaining pads (long term $85 WTI and $12.50 Western Canadian Select 'WCS' heavy differentials).

Hangingstone: Q3 production averaged 8,714 bbl/d and non?condensable gas co?injection has resulted 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 IP180s averaging ~500 boe/d per well (94% Liquids). 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 Strategic Update and Corporate Outlook

Low Decline, Long Life Asset Base: Athabasca has a deep asset inventory with 1,230 mmbbl 2P

Reserves in Thermal Oil and ~850 gross wells of short cycle?time, high returning Light Oil future locations. The asset portfolio is demonstrating its ability to generate significant Free Cash Flow and will provide tremendous optionality into the future. Production guidance of 34,000 - 35,000 boe/d (92% Liquids) in 2022 is expected to be attained through its modest capital program that is also indicative of long term sustaining capital requirements.

Managing for Free Cash Flow: For 2022, Athabasca is updating its financial forecasts based on strong operational performance and current commodity price assumptions. Adjusted Funds Flow1 is forecasted at ~$330 million including Free Cash Flow1 of ~$180 million. The Company further expects to generate ~$900 million in Free Cash Flow during the 3?year timeframe of 2022?24 (inclusive of 2022 guidance and flat pricing of US$85 WTI and US$12.50 WCS differentials thereafter). Every $5/bbl WTI change impacts Free Cash Flow by ~$45 million annually (unhedged). Strong margins and Free Cash

Flow is supported by ~$3 billion in tax pools and a Thermal Oil pre?payout Crown royalty structure.

Significant Deleveraging with Clear Targets: The Company has utilized 100% of near term Free Cash Flow to reduce its Term Debt, with a clear target of US$175 million Term Debt (50% reduction). The Company has achieved 98% of this target with $223 million (US$172 million) redeemed in 2022 through open market purchases, equity redemptions through warrant proceeds and the Free Cash

Flow payment feature within the indenture. This is significantly ahead of schedule while also maintaining a strong liquidity position of $278 million (inclusive of $200 million cash).

Excellent Exposure to Commodity Price Upside: Athabasca has excellent exposure to upside in commodity prices with minimal hedges in 2023. The Company has a constructive outlook on oil prices given years of industry underinvestment in energy. The Company believes the recent wider WCS differentials is transitory as the US administration tapers Strategic Petroleum Reserve releases and refinery maintenance season concludes.

Thermal Oil Differentiation: Athabasca's Thermal assets operate in a pre?payout Crown royalty structure, with royalty rates between 5 ? 9%, and is anticipated to last beyond 2028 (US$85 WTI & US$12.50 WCS differentials). This results in maximum cash flow at current commodity prices and creates a significant advantage over the majority of Industry oil sands projects. The Company's low decline, long reserve life Thermal Oil assets are forecasted to generate ~$450 million in Operating Income1 in 2022. At current commodity prices, these assets compete exceptionally well on all cash flow metrics against top plays in North America.

Planning for the Future: A ~$150 million capital program in 2022 now incorporates strategic readiness capital to maintain business momentum in its core assets in 2023 and beyond. The 2022 capital program has largely been insulated from inflation through prior advanced planning.

Unlocking Shareholder Value: Deleveraging in 2022 has transitioned a significant portion of enterprise value to shareholders. Athabasca is committed to further enhancing shareholder returns by utilizing Free Cash Flow and cash balances for share buy?backs once its debt target is achieved. The Company sees tremendous intrinsic value not reflected in the current share price. Guidance on shareholder returns and the corporate capital allocation framework will be provided in early December in conjunction with the 2023 budget

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

T: 14038179104

E: mtaylor@atha.com

Robert Broen

President and CEO

T: 14038179190

E: rbroen@atha.com

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