CALGARY – Athabasca Oil Corp. (TSX:ATH) says it plans to spend $798 million on capital projects next year to develop its light and heavy oil assets in Alberta.
The budget includes construction of the Hangingstone oilsands project near Fort McMurray, Alta.
The Calgary-based company is aiming to have Hangingstone on stream before the end of 2014.
Hangingstone’s Phase 1 is projected to produce the equivalent of 12,000 barrels per day of oil.
The company expects Hangingstone Phase 2 and 3 will bring the area’s potential production to more than 80,000 barrels per day.
Athabasca says it expects to exit 2012 with between 10,000 and 11,000 barrels per day of light and thermal oil production.