Calgary, Alberta – Gear Energy Ltd. (TSX: GXE) (OTCQX: GENGF) (“Gear” or the “Company”) recently submitted an application to the Alberta Energy Regulator (“AER”) to transfer certain non-core Alberta heavy oil assets. As the information related to the application is publicly available, Gear is issuing this press release to provide additional clarifying details relating to the application.
The application relates to a purchase and sale agreement entered into by Gear and an arm’s length unrelated third party pursuant to which Gear has agreed to divest of a selection of non-core Alberta heavy oil assets to such third party. The non-core assets consist of 450 wellbores, 84 facilities and 19 pipelines with a total aggregate current production of approximately 400 boe/d.
The transfers are currently classified as “Pending” with an estimated 60 to 90 days required for review by the AER. In addition to the required AER approvals for the transfers, there are a number of other conditions for closing the sales transaction and as such there is a high degree of uncertainty as to whether the transaction will ultimately be completed. If and when the sales transaction is completed, Gear will determine whether any update or adjustment to its 2022 production or financial guidance is necessary.