Birchcliff Energy Sells Non Core Assets For $59 Million

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
59MM
Description

Bought assets in the Western Canada Sedimentary Basin including 520 BOE/d of light oil production.

Birchcliff Energy Ltd. (TO: BIR) announced on Nov. 14 a $59 million disposition of a non-core asset in the Western Canada Sedimentary Basin.

Birchcliff entered into an agreement with a private company to sell non-core Progress Doe Creek assets, subject to usual closing adjustments. The sale encompasses some 520 barrels of oil equivalent per day (BOE/d) of light oil production, 2.7 million proved reserves, and 4.5 million proved plus probable reserves. The transaction has an effective date of May 1, 2013 and is expected to close before year end, with net proceeds used to reduce debt.

Upon the closing of the Progress Doe Creek transaction, Birchcliff will realize a significant one-time gain in net income. The sale of these assets will not result in any reduction of Birchcliff's current credit facilities.

Birchcliff Energy Ltd. is an independent energy company engaged in the acquisition, development, exploration, and production of petroleum and natural gas reserves in Western Canada. The company is headquartered in Calgary.