CALGARY, ALBERTA–(Marketwired – March 20, 2017) – Craft Oil Ltd. (“Craft” or the “Company“) is pleased to announce that it has closed the previously announced sale of assets (the “Disposition“), comprised of approximately 1,625 boe per day (weighted 36% oil and NGLs), located in the Grande Prairie area of northwest Alberta, to Cardinal Energy Ltd. (“Cardinal“). The Disposition was completed on March 17, 2017. Pursuant to the Disposition, Craft received approximately 4.0 million common shares of Cardinal (the “Shares“), at a deemed price of $9.1727 per Share plus cash consideration of $4.0 million. In connection with the closing, Cardinal has paid approximately $3.7 million of the cash consideration into escrow, which funds will be released upon receipt from the Alberta Energy Regulator of approval of the licence transfer application in respect licences representing at least 90% of the net asset value of the licences comprising assets subject to the Disposition.
The Disposition represents the sale of substantially all of the assets of Craft. In accordance with the requirements of the Business Corporations Act (Alberta), the Disposition was approved by 99.95% of the votes cast by Craft shareholders at the Craft special meeting held on March 17, 2017.