PanTerra Resource Corp. (Toronto Venture: PRC) has agreed to the sale of a 60% working interest in its Carrot Creek Cardium assets of Central Alberta. The total purchase price is $3,396,488. A letter of intent has been signed and a definitive purchase and sale agreement is being prepared for execution. The disposition will occur in two separate tranches, the details of which follow:
(1) The sale of 60% of the proven producing reserve asset for a price $1,096,688 which will take place on or before June 10, 2013 .
(2) The sale of 60% of the probable reserve asset and tangible surface equipment for $2,299,800 , which will take place on or before July 22, 2013 .
Transaction metrics of the proven producing portion of the sale is $45,700 per flowing barrel. This is based on 60% of the current proven producing rate of 40 bbl per day (net 24 bbl per day).
The proceeds of the disposition will be applied to reduce indebtedness under PanTerra's current credit facilities and also to provide additional funds for PanTerra's direct participation in the Tomahawk gas gathering system and the Carrot Creek Phase II Water-flood project. PanTerra will retain a 40% working interest in the Carrot Creek Project.
The Transaction involves a non-arm's length party as Geoffrey Baker is a director of both the vendor and the purchaser. Completion of the sale is subject to the approval of the Toronto Venture Exchange.
PanTerra is based in Calgary, Alberta.
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