CALGARY, July 20, 2018 /CNW/ – (TSX: EGL): Further to Eagle Energy Inc.’s (“Eagle“) previously announced strategy of reducing debt and interest charges, Eagle is pleased to announce it has signed an agreement to sell its entire interest in its oil and natural gas properties near Twining, Alberta to a third party for cash consideration of $13,820,000 before customary post-closing adjustments (the “Sale“). The Sale is expected to close on or about August 28, 2018, subject to customary closing conditions.
Eagle intends to use the net proceeds from the Sale to reduce outstanding debt under its secured term loan and to further fund its North Texas development program. The Sale is expected to reduce leverage, increase corporate netback per barrel of oil equivalent and lower its corporate decline rate.
Eagle’s management and the board of directors arrived at this decision through a competitive sale process and after carefully considering the advice of Tudor Pickering Holt & Co. Securities – Canada, ULC (“TPH“). TPH is an independent investment bank with extensive financial and technical knowledge of the energy sector.
About Eagle Energy Inc.
Eagle is an oil and gas corporation with shares listed for trading on the Toronto Stock Exchange under the symbol “EGL”.