Athabasca Oil Corp. reported its Q1 2019 results.

2019 First Quarter Highlights

• Production of 39,206 boe/d (86% liquids)

• Operating income of $76 million (excluding hedging) oAdjusted funds flow of $42 million ($0.08/share)

• Free cash flow of $10 million with positive contributions from both Light Oil and Thermal Oil

Thermal Oil – Low Decline Production

• Production of 27,494 bbl/d, in‐line with Government mandated curtailments o Operating income of $45 million with a netback of $18.50/bbl

• Leismer L7 sustaining pad rig released in February with first production expected in Q4 2019

Light Oil – High Margin Liquids Rich Returns

• Production of 11,712 boe/d (54% liquids), representing 12% growth year over year o Operating income of $31 million with a top decile netback of $29.67/boe

• Encouraging Duvernay results at Kaybob West (IP30 ~750 bbl/d) and Two Creeks (IP90 ~400 bbl/d)

Financial Resiliency

• Liquidity of $400 million (cash and available credit facilities)

• Net debt of $263 million; 2019e net debt to funds flow of 1.2x (US$65 WTI & US$17.50 WCS diff)

2019 Outlook

Uniquely Positioned for Current Market Fundamentals

• Annual capital guidance remains unchanged at $95 – $110 million

• Annual production guidance remains unchanged at 37,500 – 40,000 boe/d

• Funds flow forecast of $205 million; free cash flow ~$100million(US$65WTI & US$17.50 WCS diff) oFuture flexibility to direct free cash flow to debt reduction, share buy backs or capital projects

Athabasca is a liquids‐weighted intermediate producer with exposure to Canada’s most active resource plays (Montney, Duvernay, Oil Sands). The Company’s high quality, long life assets provide investors with unique exposure to free cash flow which, combined with focus on strong margin opportunities, drives shareholder returns.

Financial and Operational Highlights

1)Refer to the "Advisories and Other Guidance" section in the MD&A for additional information on Non‐GAAP Financial Measures.

2)Includes realized commodity risk management loss of $17.8 million for the three months ended March 31, 2019 ($0.7 million for the three months ended March 31, 2018).

3)Includes available credit under Athabasca's Credit Facility and Unsecured Letter of Credit Facility.

4)The face value of the 2022 Notes is US$450 million. The 2022 Notes were translated into Canadian dollars at the March 31, 2019 exchange rate of US$1.00 = C$1.3360.

Business Environment

In December, the Alberta Government announced mandatory industry production curtailments starting in January 2019 to alleviate the high differential situation until additional egress is added. Following the announcement, the Western Canadian Select (“WCS”) heavy oil pricing outlook has significantly improved. WCS prices averaged C$56.62 in Q1 2019, a 123% increase from C$25.36 in Q4 2018. Athabasca remains supportive of these actions and views them as a necessary step to normalize pricing and provide a bridge to permanent market access initiatives.

Industry and government crude by rail remain an important factor in managing differentials and Alberta inventories. Rail capacity continues to increase and base line utilization is expected to build through 2019 as long term contracts are operationalized.

The global heavy oil market continues to tighten with supply declines in Venezuela and Mexico, OPEC cuts and growing petrochemical demand. These changing dynamics are supporting heavy oil pricing benchmarks with US refineries in the PADD II and III regions requiring a heavier feedstock. The majority of onshore North American liquids production growth is light or condensate spec and slated for export to the international market. Athabasca is well positioned for this changing global supply dynamic with its Thermal Oil weighted production and long life reserve base.

Operations Update

Light Oil

Q1 2019 production averaged 11,712 boe/d (54% liquids), representing 12% growth year over year. The business division generated record operating income of $31.3 million a with top decile netback of $29.67/boe. Capital expenditures for the quarter were $8.6 million (net of capital carry) with free cash flow of $22.6 million.

The liquids rich Montney at Greater Placid (70% operated working interest) is positioned for flexible and efficient development. Robust project economics are supported by strong initial liquids yields (200 – 300 bbl/mmcf), low lifting costs and a ~200 well high graded inventory. The Company has a completion ready pad (seven wells) that was drilled last winter.

Activity in the Greater Kaybob Duvernay (30% non‐operated working interest) remains robust and the partnership is planning to execute a jointly approved 2019 budget of ~C$280 million gross (~C$20 million net of capital carry). Activity is focused on volatile oil delineation at Two Creeks, Kaybob East and Kaybob West. The partnership remains encouraged by appraisal results from the first well at Two Creeks 4‐21‐64‐ 18W5 which had a facility restricted IP90 of ~400 bbl/d (condensate). Athabasca drilled this shorter horizontal well in 2015 for land retention and a future resource appraisal test. Two additional multi‐well pads were drilled and completed this winter at Two Creeks with production tests to commence post break‐up. A significant northern step‐out at Kaybob West 16‐25‐65‐20W5 had a facility restricted IP30 of ~750 bbl/d (condensate). By the end of this year Athabasca believes the majority of the Duvernay acreage (six areas across ~200,000 gross acres) will be de‐risked from a resource appraisal perspective and the partnership will be in a position to high‐grade development opportunities thereafter. Athabasca remains protected into 2020 with a current capital carry balance of $60.5 million.