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Highwood Oil Company Ltd. Announces Completion of Successful Disposition Program, Acquisition of Over 320,000 Acres of Lithium Permits, and Strategic Transformation to an Asset Management Company
Highwood Oil Company Ltd. Announces Completion of Successful Disposition Program, Acquisi...
About this update from Highwood Asset Management Ltd
[{"type":"text","content":"\n \n \n \n Highwood Oil Company Ltd. Announces Completion of Successful Disposition Program, Acquisition of Over 320,000 Acres of Lithium Permits, and Strategic Transformation to an Asset Management Company\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n March 25, 2021\n \n /CNW/ - Highwood Oil Company Ltd (TSXV: HOCL) (\"Highwood\" or the \"Company\") is pleased to provide the below updates.\n \n \n \n \n \n \n \n \n \n \n Operational Update\n \n \n \n As previously announced on\n \n November 13, 2020\n \n , Highwood has closed the divestiture of its Red Earth assets (\"Red Earth\") and the related decommissioning liability of approximately\n \n $35 million\n \n , for sale proceeds of\n \n $2 million\n \n in cash (the \"Red Earth Sale\").\n \n \n The disposition of Red Earth was to Blue Sky Resources Ltd., an arm's-length\n \n Alberta\n \n based, private oil and gas exploration and ‎production company. The Alberta Energy Regulator has accepted all license transfers relating to the sale of Red Earth. Highwood has been engaged by the purchaser to provide transition services ‎relating to the disposed assets through\n \n May 2021\n \n . A 1.5% success fee was paid to National Bank ‎Financial for their role as financial advisor to the Red Earth Sale.\n \n \n Highwood's largest source of cashflow continues to be its 200 km Wabasca Crude Transmission Pipeline in addition to approximately 125 bbls/day of oil production. Pro-forma the Red Earth Sale, Highwood's current net debt position is approximately\n \n $2.5 million\n \n on a conforming operating facility of\n \n $10 million\n \n , which matures\n \n May 31, 2021\n \n .\n \n \n \n Acquisition of Over 320,000 Acres of Mineral Permits for Lithium Evaluation\n \n \n \n Highwood is pleased to announce that it has secured permits over a land position exceeding 320,000 acres throughout\n \n Alberta\n \n and\n \n British Columbia\n \n via Metallic and Industrial Mineral Permits that it deems to be prospective for lithium extraction. Highwood...