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Highwood Oil Company Ltd. Announces Disposition of Clearwater Assets for $40.8 Million in Cash
Highwood Oil Company Ltd. Announces Disposition of Clearwater Assets for $40.8 Million in...
About this update from Highwood Asset Management Ltd
[{"type":"text","content":"\n \n \n \n Highwood Oil Company Ltd. Announces Disposition of Clearwater Assets for $40.8 Million in Cash\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 CALGARY, AB\n \n ,\n \n Dec. 14, 2020\n \n /CNW/ - Highwood Oil Company Ltd., (\"\n \n HOCL\n \n \", \"\n \n Highwood\n \n \" or the \"\n \n Company\n \n \") (TSXV: HOCL) is pleased to announce that, as a result of its strategic alternatives review process, it has today entered into a definitive agreement with an arm's length purchaser, Tamarack Valley Energy Ltd. (\"\n \n Tamarack\n \n \") to divest of the Company's\n \n Clearwater\n \n assets for cash consideration of\n \n $40.8 million\n \n (the \"\n \n Divestiture\n \n \").  The effective date of the Divestiture is\n \n November 1\n \n , 2020.\n \n \n \n \n \n \n \n \n \n The Divesture is expected to close on\n \n December 21, 2020\n \n and remains subject to customary closing conditions.\n \n \n \n GO FORWARD POSITIONING\n \n \n \n The Company's Board of Directors has approved the Divestiture given the tremendous accretion in value of the\n \n Clearwater\n \n assets since the Company began amassing a land position in 2017.  The Divestiture is transformative to the Company's balance sheet and removes lender pressure while positioning Highwood to seek out new growth opportunities.\n \n \n Together with the Red Earth disposition, previously announced on\n \n November 13, 2020\n \n , the Divestiture will leave Highwood with a cleaner balance sheet. The Company's lender has granted a further extension of the maturity of Term Facility A to\n \n December 31, 2020\n \n to allow for closing of the Divestiture. Proceeds from the divestiture will satisfy the expiring tranches of the Company's existing credit facility. Upon closing of the transaction, the Company is expecting an\n \n $8\n \n -10 million pro forma operating facility and will seek to evaluate acquisition opportunities.\n \n \n Following the conclusion of the Company's strategic alternatives review process, Highwood emerges with corporate production of 100 bbl/d from producing properties in...