Business
Highwood Oil Company Ltd. Announces the Strategic Divestiture of Red Earth Property
Highwood Oil Company Ltd. Announces the Strategic Divestiture of Red Earth Property ...
About this update from Highwood Asset Management Ltd
[{"type":"text","content":"\n \n \n \n Highwood Oil Company Ltd. Announces the Strategic Divestiture of Red Earth Property\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 CALGARY, AB, Nov. 13, 2020\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Nov. 13, 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 it has entered into an agreement with an arm's-length\n \n Alberta\n \n based, private oil and gas exploration and production company (the \"\n \n Purchaser\n \n \") to divest of the Company's Red Earth field for a total transaction value of $2 million cash, prior to customary closing adjustments (the \"\n \n Divestiture\n \n \"). As part of the Divestiture, the purchaser paid a\n \n $200,000\n \n non-refundable deposit into trust to be applied against the closing consideration. Current production from the Red Earth field is approximately 1,000 bbl/d of oil.\n \n \n \n \n \n \n \n \n \n The Divestiture is closed into escrow subject to regulatory approval and license transfers. The Company anticipates closing conditions being satisfied in late\n \n January 2021\n \n . The effective date of the Divestiture is the closing date, being the 10\n \n th\n \n business day following the date upon which regulatory approval is received. The Divestiture does not include any working interest in the Company's Wabasca Crude Oil Transmission Pipeline.\n \n \n \n STRATEGIC RATIONALE\n \n \n \n With the recent success of the Clearwater Fairway and its drilling program, the Company considered the Red Earth assets to be non-core in nature. The Divestiture allows the Company to remove approximately\n \n $30.0 million\n \n of undiscounted, uninflated decommissioning obligations from its schedule of liabilities. Highwood is focusing on the higher netback assets with lower operating costs.\n \n \n \n ADVISOR\n \n \n \n National Bank Financial Inc. acted as financial advisor to Highwood with respect to the Divestiture.\n \n \n \n Oil and Gas Measures\n \n \n \n \n Re...