Lone Pine Resources Sells Producing Assets In Liard Basin

Purchased minority WI, oil producing properties in the Loon area of Northern Alberta.

Lone Pine Resources Inc. (OTC: LPRIQ) announced Dec. 19 the disposition of certain non-operated, minority working interest assets and an update regarding its undeveloped land continuation efforts at Pointed Mountain in the Liard Basin for $7.8 million in cash.

The company's wholly owned subsidiary, Lone Pine Resources Canada Ltd., completed the disposition of certain non-operated, minority working interest, oil producing properties located in the Loon area of Northern Alberta. The assets sold had average sales volumes during the last six months of 80 barrels of oil equivalent per day (BOE/d). The transaction closed on Dec. 18 and Lone Pine used the net proceeds of the sale to reduce indebtedness outstanding under its existing senior secured credit facility.

Additionally, Lone Pine has obtained 21-year lease renewals from the Minister of Aboriginal Affairs and Northern Development in accordance with section 62 of the Canada Oil and Gas Lease Regulations in the Pointed Mountain area of the Liard Basin in the Northwest Territories. Lone Pine now holds a 100% operated working interest in 53,000 acres at Pointed Mountain in the Liard Basin under leases.

Lone Pine Resources Inc. is an independent energy company engaged in the exploration and development of natural gas and light oil in Canada. The company is based in Calgary.