Business
Stratic Energy Corporation - Sale of Turkish Business
Stratic Energy Corporation - Sale of Turkish Business
About this update from Arrow Exploration Corp.
[{"type":"text","content":"\n\n\n\n May 7, 2010 (Canada NewsWire Group) -- Stratic Energy Corporation (TSX Venture: 'SE', AIM 'SE.') ("Stratic" or the "Company") announces it has reached agreement for the sale of its Turkish business. Stratic has today signed a sale and purchase agreement in respect of its Turkish subsidiary Stratic Energy (Turkey) Inc. ('SETI'). The purchasers are primarily a group of local Turkish companies. The total cash received from the deal will be $3.45 million, of which $2.40 million has already been paid to Stratic by SETI during the current year, $0.55 million is payable on completion and $0.50 million is due in December 2010. The purchasers will acquire all the assets and liabilities of SETI on completion, which is expected in mid May 2010. Kevin Watts, Stratic's President and Chief Executive Officer, commented: "The sale of our Turkish business is a further step in our restructuring program and provides us with a clean exit from the region. In addition, it frees up capital of nearly $20 million for investment in higher return activities elsewhere in Stratic's business that would otherwise have been spent on the next phase of development in Turkey."\n\nAbout Stratic: Stratic Energy Corporation is a Canadian incorporated international oil and gas business which is engaged in the appraisal, development and production of petroleum and natural gas discoveries, supplemented by an exploration program. As a result of the worldwide credit crisis, which has particularly affected the Company in view of the capital intensive nature of its strategy, Stratic has been involved in a major restructuring program over the last twelve months to reduce debt levels and create financial flexibility. In future the business will be focused on the North Sea for its cash flow generating ability (West Don) and near term development investment opportunity (Crawford), whereas its exploration effort will be increased and concentrated on lower cost areas and potential company changing opportunities. Stratic's shares are listed on the TSX Venture Exchange in Toronto and on AIM, London and its principal operating office is in London, UK.\n\nForward-looking statements\n\nThis news release contains certain forward looking statements, which involve assumptions with respect to future plans, production levels and results, and capital ...