ATHOF - Athabasca Oil: The Need For Scale
Athabasca Oil (OTC:ATHOF) Q3 results show the increase of the production lowered the per unit costs. Also, with high oil prices, the company generated positive total netbacks.
Management communicated the 2019 capital program would depend on the oil prices. But with Notley's decision to reduce the oil production in Alberta, the company will not have much flexibility.
In any case, the flowing barrel valuation is low. The market takes into account the lack of scale. The company needs to grow the production to lower the per unit costs and to enhance the