Stratic Energy Corporation - Sale of Breagh Field

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[{"type":"text","content":"\n\n\n\nCALGARY and LONDON, July 22 /CNW/ - Stratic Energy Corporation (TSX\nVenture: 'SE', AIM 'SE.') ("Stratic" or the "Company") is pleased to announce\nthe sale of its 10% interest in the UK North Sea Breagh gas field, and its\ninterests in associated exploration licenses, to RWE Dea UK SNS Limited, a\nsubsidiary of RWE Dea AG ("RWE Dea"), an international upstream company with\nits headquarters in Hamburg, Germany. The consideration receivable is cash of\napproximately US$61.751 million, plus working capital adjustments, payable on\ncompletion expected to occur in the approximately 4-6 weeks. The sale is part\nof a consortium sale of 70% of Breagh, and completion of the sales is subject,\nto consent of the Secretary of State for Energy and Climate Change. Stratic\nintends to use the proceeds of sale to reduce borrowings and to fund ongoing\noperational expenditure.\n\n\nStratic acquired its interest in the Breagh field with the purchase of\nGrove Energy in 2007, and has since participated in 3 appraisal wells to\ndelineate the field. The decision to sell, in conjunction with partners, was\ntaken early this year in the light of the considerable future development\ncosts needed to bring the field on-stream, and as part of Stratic's previously\nannounced disposals programme to strengthen its finances. The licenses being\nsold are in respect of blocks 42/12a & 42/13a which include the Breagh field,\nblocks 42/8, 42/9 and 42/14 (all Stratic 10%), 42/10 and 42/15 (both Stratic\n20%).\n\n\nStratic and its partners were advised on the sale by Standard Chartered\nBank.\n\n\nKevin Watts, President and Chief Executive Officer, said: "we are\ndelighted with the outcome of this sale process. The proceeds will enable us\nto pay down our pre-development debt facility earlier than originally\nenvisaged, normalise our ongoing banking arrangements and move forward with\nour North Sea development programme. In addition, we are currently drilling in\nthe UK North Sea on the Bowmore discovery with the results of this important\nwell expected next month, and we are preparing to drill a gas exploration well\nin Syria later this year".\n\n\nThe TSX Venture Exchange has not reviewed and does not accept\nresponsibility for the adequacy or accuracy of the contents of this\nrelease.\n\n\nAbout Stratic:\n\n\n...

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