CALGARY – Shares in Athabasca Oil (TSX:ATH) surged as much as 19 per cent on Wednesday after Alberta’s energy regulator approved its Dover oilsands project.

The approval means its joint-venture partner, PetroChina, has a month to buy Athabasca’s 40 per cent stake in the project for $1.32 billion, giving Athabasca a much-needed cash infusion.

Early last year, PetroChina snapped up Athabasca’s interest in another jointly operated project, MacKay River, for $680 million, making it the first oilsands development to be fully controlled by a state-owned Chinese company.

Athabasca’s stock traded as high as $8.75, about 19 per cent higher than its close Tuesday. The stock was up 77 cents at $8.14, a gain of 10 per cent in early afternoon trading.

The Alberta energy regulator said late Tuesday it would allow Athabasca to go ahead with the Dover project, which will use steam to soften the bitumen and draw it to the surface.

However, its approval comes with 10 conditions, mostly having to do with controlling emissions and odours.

The nearby Fort McKay First Nation told public hearings earlier this year that it had concerns about the project’s effects on its lands.