Athabasca Oil Corporation Resumes Operations at Hangingstone

CALGARY, ALBERTA--(Marketwired - May 24, 2016) - Athabasca Oil Corporation (TSX:ATH) ("Athabasca" or the "Company") has resumed operations at Hangingstone following a shutdown on May 5^th due to the wildfires in the Fort McMurray region. There has been no damage to Athabasca's assets. Prior to the shutdown, production volumes reached in excess of 9,000 bbl/d. The Company expects the reservoir to re-pressurize to normal operating levels over the next several weeks with no anticipated long-term impacts. Athabasca will continue to work closely with the province, region and industry to monitor and manage the fire risk.

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.

Reader Advisory:

This News Release contains forward-looking information that involves various risks, uncertainties and other factors. All information other than statements of historical fact is forward-looking information. The use of any of the words "anticipate", "expect", "may", "will" and similar expressions are intended to identify forward-looking information. The forward-looking information is not historical fact, but rather is based on the Company's current plans, objectives, goals, strategies, estimates, assumptions and projections about the Company's industry, business and future financial results. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. No assurance can be given that these expectations will prove to be correct and such forward-looking information included in this News Release should not be unduly relied upon. This information speaks only as of the date of this News Release. In particular, this News Release may contain forward-looking information pertaining to the following: the Company's expectation that the Hangingstone project's reservoir will re-pressurize to normal operating levels and the expected timing of the re-pressurization of the reservoir.

With respect to forward-looking information contained in this News Release, assumptions have been made regarding, among other things: the Company's ability to resume normal Hangingstone operations and to re-pressurize the reservoir to normal operating levels, the amount of time it will take to re-pressurize the reservoir and the characteristics of the reservoir.; and the Company's ability to obtain equipment in a timely and cost-efficient manner.

Actual results could differ materially from those anticipated in this forward-looking information as a result of the risk factors set forth in the Company's Annual Information Form ("AIF") dated March 10, 2016 that is available on SEDAR at www.sedar.com, including, but not limited to: risk associated with the on-going regional fires in the Fort McMurray region and other events of force majeure; risks inherent in Athabasca's operations, environmental risks and hazards; failure to meet start-up schedules; risks and uncertainties inherent in SAGD; the substantial capital requirements of Athabasca's projects and the ability to obtain financing for Athabasca's capital requirements; operational and business interruption risks associated with the Company's facilities; risks related to gathering and processing facilities and pipeline systems; failure by counterparties to perform their operational or other obligations to Athabasca in compliance with the terms of contractual arrangements between Athabasca and such counterparties; factors affecting potential profitability; changes to Athabasca's status given the current stage of development; litigation risk; availability of equipment and limitations on access to Athabasca's assets; increases in costs could make Athabasca's projects uneconomic; the effect of diluent and natural gas supply constraints and increases in the costs thereof; the potential for management estimates and assumptions to be inaccurate; reliance on third party infrastructure; seasonality; insurance risks; claims made in respect of Athabasca's operations, properties or assets; competition for, among other things, capital, export pipeline capacity and skilled personnel; and the failure of Athabasca or the holder of certain licenses, leases or permits to meet specific requirements of such licenses, leases or permits.

The forward-looking statements included in this News Release are expressly qualified by this cautionary statement. Athabasca does not undertake any obligation to publicly update or revise any forward-looking statements except as required by applicable securities laws.