Clearview is very pleased to announce the Company has sold three non-core, non-operated assets for total proceeds of $3.3 million. “The disposition metrics from these properties were very attractive to Clearview and will free up capital to pursue returns to shareholders as well as a development drilling program,” commented Rod Hume, Clearview’s CEO. “Pro forma these dispositions, Clearview has no outstanding bank debt and a cash balance on hand of approximately $2.9 million as of January 31, 2023,” added Mr. Hume.
As previously disclosed, Clearview closed the disposition of its non-operated working interest in the Carstairs Elkton Unit for gross proceeds of $1.68 million (net proceeds of $1.5 million after customary adjustments) on November 16, 2022. The disposition included approximately 128 barrels of oil equivalent per day (“boe/d”) of production consisting of 70% natural gas and 30% natural gas liquids. Decommissioning obligations on an undiscounted, uninflated basis, removed from the Company’s balance sheet, totalled approximately $0.4 million. Proceeds from the disposition were immediately applied against the Company’s bank debt.
Over the past few months, Clearview has continued to rationalize its non-core, non-operated assets in southern Alberta.
On December 30, 2022, the Company closed the disposition of its non-operated working interest in the East Crossfield Unit. The Company sold the property for gross and net proceeds of $135,000. The disposition included approximately 19 boe/d of production consisting of 85% natural gas and 15% natural gas liquids. Decommissioning obligations on an undiscounted, uninflated basis, removed from the Company’s balance sheet, totalled approximately $0.3 million.
On January 31, 2023, the Company closed the disposition of its non-operated working interest in the Lindale Cardium Unit for gross proceeds of $1.5 million (net proceeds of $1.46 million after customary adjustments). The disposition included approximately 42 boe/d consisting of 53% crude oil, 37% natural gas and 10% natural gas liquids. Decommissioning obligations on an undiscounted, uninflated basis removed from the Company’s balance sheet, totalled approximately $1.6 million.
Clearview continues to pursue dispositions of additional non-core, non-operated working interest properties to further reduce decommissioning obligations and administrative burdens, while increasing the percentage of production that the Company operates and focussing its operations in West Central Alberta. With these three dispositions, Clearview now operates approximately 89% of its production. Additionally, the pace of development spending and asset retirement expenditures are now largely within the Company’s control.
The Company anticipates initiating returns to shareholders in the second quarter of 2023. While plans for these returns are not yet finalized, nor approved by the Board of Directors, Clearview is evaluating a Substantial Issuer Bid to purchase, for cancellation, a portion of the shares of the Company by way of a modified Dutch auction. In addition, Clearview is evaluating returns to shareholders via special dividends. The amount and allocation of shareholder returns are dependent on many factors, including commodity prices, credit agreements, production results/success of reactivation and optimization programs, continued inflationary pressures on corporate costs, and capital spending to maintain the asset base. While these factors bring variability and uncertainty to financial results, Clearview remains confident and committed to shareholder returns in 2023.