CALGARY, ALBERTA–(Marketwired – Dec. 30, 2015) – Anterra Energy Inc. (“Anterra” or the “Company”) (TSX VENTURE:AE.A) announces that it has signed a purchase and sale agreement dated December 22, 2015 with Western Union Petro (Canada) Technology Co. Ltd. (“Western Union”), a subsidiary of LandOcean Energy Services Co. Ltd. The agreement provides that amounts owed by Anterra to Western Union (approximately $3.2 million) are extinguished in exchange for Anterra transferring its interests in three properties to Western Union.
The interests to be transferred to Western Union are located at Two Creek and Sakwatamau in Alberta, and at Abbott, Saskatchewan. The Two Creek property is currently operating at a loss due to low oil prices. Neither the Sakwatamau nor Abbott properties currently have production, and are expected to require significant investment to develop the properties. In addition, decommissioning liabilities associated with the properties are estimated at $3.8 million. Management is of the opinion the $3.2 million of debt so extinguished equates to the fair value of the properties being transferred.
The proposed transaction is subject to receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange (“TSX-V”), receipt of lender consent and receipt of shareholder consent.
Western Union is based in Calgary and is wholly owned by LandOcean Energy Services Co. Ltd., a Beijing-based international oilfield services company, listed on the Shenzhen market under the code 300157. LandOcean Energy Services Co. Ltd. is also the parent of a significant shareholder of Anterra, (LandOcean Resources Investment Canada Co. Ltd., which holds approximately 22% of Anterra’s issued and outstanding shares). While the proposed transaction is subject to the requirements of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions, it is expected that exemptions from the formal valuation and minority approval requirements are available to Anterra.
About Anterra Energy Inc.
Anterra is an independent oil focused junior exploration and production company with operations in the Western Canadian Sedimentary Basin. The Company is actively engaged in the acquisition, development and production of oil and natural gas complemented by the operation of fee-based midstream facilities. Anterra is headquartered in Calgary, Alberta, is listed and trades on the TSX-V under the symbol “AE.A”. Additional information is available on the Company’s website at www.anterraenergy.com.