CALGARY, June 14, 2013 /CNW/ – PanTerra Resource Corp. (“PanTerra” or the “Company“) announces that it has closed the first tranche of an asset sale at its Carrot Creek property that was previously announced on June 4, 2013.
The first tranche consists of the sale of 60% of the Proven Producing Reserve asset for a price $1,096,688.
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.
The second tranche for 60% of the probable reserves and facilities is expected to close on or before July 22, 2013 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, the Company announces that as a result of the disposition and with the retirement of a major portion of debt it anticipates that a reduction in its revolving line will take place and is in ongoing negotiations with its banker to determine the new terms.
About PanTerra
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
Email: fred@panterraresource.com
or
Jake Pronk P. Geol
V.P. Exploration at 403-261-5900
Email: jake@panterraresource.com