HOUSTON, Aug. 31, 2018 (GLOBE NEWSWIRE) — via NetworkWire – Hunter Oil Corp. (OTCQX: HOILF; TSX-V: HOC) (the “Company”) is pleased to announce that it has closed the sale of substantially all of its oil and gas operations (the “Assets”) to Pacific Energy Development Corp. (the “Purchaser”), a Nevada corporation and a wholly-owned subsidiary of PEDEVCO Corp. (NYSE American: PED), an arm’s length, California-based oil and gas company (the “Transaction”), previously announced on August 1, 2018.
The aggregate purchase price paid for the Assets was USD $21,315,636 (the “Purchase Price”), being approximately CAD $27,710,327. In addition, the Purchaser assumed all of the long-term liabilities being the asset retirement obligations associated with the oil and gas leases.
“After securing managerial control of Hunter in Q1 of 2015, I assembled a team of nimble and efficient industry professionals to develop the portfolio of highly distressed assets into a turn-key, horizontal San Andres targeted drilling opportunity. This transaction monetizes our efforts of the past three years, and I am especially pleased to have generated a significant return for the shareholders who supported us throughout,” said Andrew Hromyk, Executive Chairman.
The Company expects to distribute its available cash (less USD $2,500,000 for working capital) to its shareholders as a return of capital distribution (the “Distribution”). The Company plans to announce the record date and mechanics for the Distribution as soon as possible.
All figures herein assume a USD/CAD exchange rate of 1.30.
Following completion of the Distribution the Company plans to seek to locate, evaluate and where advisable negotiate to acquire interests in additional oil and gas properties. There is no guarantee that the Company will be able to identify suitable oil and gas prospects, or that the Company will be able to negotiate acceptable terms for any prospects that it identifies. The TSXV may transfer the Company to the NEX, a separate board of the TSXV, if the Company fails to meet the ongoing minimum listing requirements of the TSXV.