CALGARY, AB – Advantage Oil & Gas Ltd. (“Advantage” or the “Corporation”) is pleased to announce it has successfully closed the previously announced sale of a 12.5% interest in the Glacier Gas Plant to Topaz Energy Corp. (“Topaz”) and received $100 million cash proceeds (see press release dated April 13, 2020). This transaction fortifies Advantage’s robust balance sheet and augments the Corporation’s ability to execute value-generating capital projects and strategic opportunities. Advantage retains the remaining 87.5% interest and will continue to be operator of the Glacier Gas Plant with access to all surplus capacity during the term of a 15-year volume commitment with Topaz.
Subsequent to closing the transaction, Advantage will utilize the cash proceeds net of transaction costs to reduce bank indebtedness on the Corporation’s $350 million revolving credit facility (see press release dated May 26, 2020).