TSX Venture Exchange: RBE
VANCOUVER, June 6, 2016 /CNW/ – RockBridge Resources Inc. (“RockBridge” or the “Company” – TSXV symbol: RBE) currently carries on its business with its non-operated producing oil and gas assets, being the majority of the Company’s production, being owned by RockBridge, the public company. Its Alberta subsidiary, RockBridge Energy Alberta Inc. (RockBridge Alberta) owns all the operated assets including a number of abandoned wells.
RockBridge has agreed to sell RockBridge Alberta to 1077398 B.C. Ltd. (the Purchaser), the principal of which is Steve Mathiesen, the CEO of the Company. The Company earlier this year made several efforts to sell RockBridge Alberta to third parties; however, with various issues including creditor and abandonment liabilities, Alberta Energy Regulator issues and negative cash flow, there was no material interest.
The terms of the sale of RockBridge Alberta to the Purchaser include the sale of its shares and the sale of the balance of the loans made by RockBridge to the subsidiary. The consideration includes $100 for the shares, $10 for the loan, and 50% of any amounts received in the next two years with respect to any sale of RockBridge Alberta shares, any dividends received or any loan proceeds received. The Company has agreed to continue to provide management and administrative services to RockBridge Alberta to December 31, 2106 at no cost and has agreed to indemnify the Purchaser from any liabilities related to the abandonment or reclamation of assets. The Company Board has approved the sale, subject to regulatory approval.
For the Company itself, management continues to consider viable strategic alternatives, including a possible merger with another oil and gas company, or the possible sale of its oil and gas assets.