Lone Pine Sells Deep Basin

Sale of non core producing assets in the Kaybob area of the Deep Basin, Alberta, Canada to two different undisclosed buyers.

Lone Pine Resources (NYSE: LPR) plans to sell non-core oil and gas assets in the Kaybob area of the Deep Basin for $19 million in cash.

The assets, which were sold in two different transactions to undisclosed buyers, had net sales volumes of about 3.4 million cubic feet equivalent per day, 82% of which was natural gas. Total net estimated proved reserves were 11.1 billion cubic feet equivalent (Bcfe) as of Dec. 31, 2011, based on guidelines set by the U.S. Securities and Exchange Commission.

Both transactions have an effective date of Aug. 1. Lone Pine closed on one of the transaction son Sept. 25, and expects to close on the other one in mid-October. The proceeds from the two sales will be used to reduce debt and there will be no change in the company’s borrowing base as a result of the transactions.

Wells Fargo analysts said the sale price represents approximately $3,200 per acre and about $33,500 BOE per day, which is above the range of $20,000 to $25,000 per BOE per day that it had previously cited for comparable transactions.

Lone Pine Resources is based in Calgary, Alberta.