2010-01-12-2009-12-10-2009-12-29

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
8MM
Description

Bought gas assets in Garrington, Willesden Green areas of AB, gaining 250 BOE.

ProspEx Resources Ltd., Calgary, (Toronto: PSX) has closed its divestment of gas assets in the Garrington and Willesden Green areas of west-central Alberta for C$8 million to an undisclosed buyer.

The assets include 16 gross (8.6 net) producing wells with daily production of approximately 250 net barrels of oil equivalent, along with associated gas-gathering and field-compression facilities.

Proceeds from the sale will be used to reduce debt, which, as of Sept. 30, was C$27.8 million. The company's credit facility limit will be reduced to C$33 million from its current limit of C$40 million following the transaction.

ProspEx says the transaction allows it to consolidate its asset base around its core areas in west-central Alberta and the Deep Basin, where it will devote most of its capital spending on horizontal drilling prospects.