PanTerra Closes First Tranche Of Cardium Assets

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
1MM
Description

Closed the first tranche of its Carrot Creek asset sale.

PanTerra Resource Corp. (TSXV: PRC) closed the first tranche of the previously announced asset sale at its Carrot Creek property in Central Alberta for some C $1.1 million.

The first tranche consists of the sale of 60% of the proven producing reserve asset. Transaction metrics of the proven producing portion of the sale is C $45,700 per flowing barrel. This is based on 60% of the current proven producing rate of 40 barrels per day (24 net).

The proceeds will be applied to reduce indebtedness under its current credit facilities.

The second tranche for 60% of the probable reserves and facilities is expected to close on or before July 22 and will be used to further retire debt and for go-forward projects.

The transaction involves a non-arm's length party as Geoffrey Baker is a director of the both the vendor and the purchaser. The company has received conditional approval of the TSX-V for this transaction.

Further, as a result of the disposition and with the retirement of a major portion of debt the company anticipates that a reduction in its revolving line will take place and is in ongoing negotiations with its banker to determine the new terms.

PanTerra Resource Corp. is an independent energy company engaged in the acquisition, exploration, and development of conventional and unconventional oil and gas properties in western Canada. The company is based in Calgary.