Calgary, Alberta (FSCwire) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma”) is pleased to announce that it has entered into an agreement to sell a minor interest in a gas property acquired as part of a previous transaction. The sale price of the non-core disposition is approximately $350,000 net to Point Loma, before customary closing adjustments, and will be paid in cash.
- Point Loma and Salt Bush Energy (‘Joint Venture Partner”) have entered in to an agreement to sell interests in a non-core property producing approximately 40 boepd (80% natural gas, 20% NGL) The sale price for this non-core gas weighted property is $500,000 (net $350,000 to Point Loma).
- The effective date of the disposition will be June 1, 2018.
- Point Loma is reviewing and monetizing select additional non-core assets to unlock further value across its large 250 net section land position in west central Alberta.
The disposition is anticipated to close in September 2018, subject to regulatory approvals. Proceeds from this non-core asset sale will be used to enhance the Corporation’s balance sheet. The Corporation has no bank debt and is increasing positive cashflow from operations.
“This non-core disposition continues to rationalize and focus Point Loma’s core area while adding to general corporate revenues.” said Terry Meek, President and CEO of Point Loma. “Point Loma and its Joint Venture Partner are committed to optimizing operations to further reduce costs and increase net netbacks.”
About Point Loma
Point Loma is a public oil and gas exploration and development company focused on conventional and unconventional oil and gas reservoirs in west central Alberta. The Corporation controls over 160,000 net acres (250 net sections) and has a deep inventory of oil opportunities in the Mannville, Banff, Nordegg, and Duvernay Shale formations. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery. For more information, please visit Point Loma’s website at www.pointloma.ca or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.