CALGARY, June 4, 2013 /CNW/ – PanTerra Resource Corp. (“PanTerra” or the “Company“) announces that it has agreed to the sale of a 60% Working Interest in its Carrot Creek Cardium assets of Central Alberta. The total purchase price is$3,396,488. A letter of intent (“LOI”) has been signed and a definitive purchase and sale agreement is being prepared for execution. The disposition will occur in two separate tranches, the details of which follow:
(1) The sale of 60% of the Proven Producing Reserve asset for a price $1,096,688 which will take place on or before June 10, 2013.
(2) The sale of 60% of the Probable Reserve asset and tangible surface equipment for $2,299,800, which will take place on or before July 22, 2013.
Transaction metrics of the Proven Producing portion of the sale is $45,700 per flowing barrel. This is based on 60% of the current proven producing rate of 40 BBls per day (net 24 BBls per day).
The proceeds of the disposition will be applied to reduce indebtedness under PanTerra’s current credit facilities and also to provide additional funds for PanTerra’s direct participation in the Tomahawk gas gathering system and the Carrot Creek Phase II Water-flood project. PanTerra will retain a 40% Working Interest in the Carrot Creek Project.
The Transaction involves a non-arm’s length party as Geoffrey Baker is a director of both the vendor and the purchaser. Completion of the sale is subject to the approval of the TSX-V.
PanTerra is a diversified junior public oil and gas company listed on the TSX Venture Exchange (“TSXV“) under the symbol “PRC”, with holdings in both conventional and unconventional projects in Western Canada that have excellent optimization and exploitation potential. Company information can be found at: www.panterraresource.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: PanTerra Resource Corp.
For further information:
Fred P. Rumak P.Geol.
President and C.E.O. at 403-261-5900
Jake Pronk P. Geol
V.P. Exploration at 403-261-5900