Athasbasca Oil Corp said on Thursday it has exercised an option to sell its 40 percent stake in the planned Dover oil sands project to its partner PetroChina Co for C$1.32 billion ($1.20 billion) after the project received final approvals from the government of Alberta. 

Athabasca said it would sell its stake in the Brion Energy partnership developing the thermal oil sands project to its Chinese partner under an existing agreement between the two. PetroChina can now build Dover, which could eventually produce as much as 250,000 barrels of oil sands bitumen per day. 

"We have today opted to sell our remaining ownership in projects operated by Brion Energy," Sveinung Svarte, Athabasca's chief executive, said in a statement. "We have very much appreciated working with our joint venture partner at Brion Energy over the past four years and wish them every success as they proceed with the Dover development." Athabasca expects to realize C$1.23 billion from the sale of its stake after closing adjustments. 

The company expects to use the proceeds to develop its other oil sands and light oil projects in Alberta. Athabasca shares were up 8 Canadian cents at C$8.15 in Thursday afternoon on the Toronto Stock Exchange.