Athabasca Oil Corporation (TSX: ATH) closed a new $500 million covenant-based credit facility with Canadian banks, the company announced. The facility has a four-year term ending in May 2030 and includes annual extension rights.

Duvernay Energy, a subsidiary in which Athabasca holds a 70% equity interest, also closed an expanded $75 million reserve-based credit facility. Combined with existing resources, the company's consolidated liquidity reaches approximately $870 million.

The Calgary-based energy company reported having $60 million in net cash and $290 million in cash as of March 31, 2026, according to the press release statement.

Athabasca indicated the new credit facilities support its thermal oil growth plan targeting production of more than 60,000 barrels per day by 2030. The financing also backs an expanded capital program at Duvernay Energy that was announced during the company's first quarter 2026 results.

The company operates thermal and light oil assets in Alberta's Western Canadian Sedimentary Basin. Athabasca's light oil assets are held through Duvernay Energy Corporation, while its thermal oil operations focus on oil sands development.

The new facilities replace previous credit arrangements and provide what the company describes as enhanced durability and lower cost of capital for its operations and growth plans.