Business
Journey Energy Inc. Announces Sale of Assets and Cost Reduction Initiatives
Journey Energy Inc. Announces Sale of Assets and Cost Reduction Initiatives Can...
About this update from Journey Energy, Inc.
[{"type":"text","content":"\n \n \n \n Journey Energy Inc. Announces Sale of Assets and Cost Reduction Initiatives\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. 2, 2020\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Nov. 2, 2020\n \n /CNW/ - Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) (\"\n \n Journey\n \n \" or the \"\n \n Company\n \n \") is pleased to announce that it has entered into definitive agreements for the sale of assets in both its Countess area (including Journey's newly commissioned 4.2 megawatt power project); and also producing assets in its Telfordville area.  Total proceeds from these asset sales of approximately\n \n $15 million\n \n before closing adjustments, will be used to retire indebtedness associated with new term loans advanced from the Alberta Investment Management Corporation on\n \n October 30, 2020\n \n (see the press release dated\n \n October 30, 2020\n \n ).\n \n \n A definitive agreement for the sale of its power generation asset along with associated producing assets in the Countess,\n \n Alberta\n \n area was entered into on\n \n November 2\n \n , 2020.  The Company commissioned the 4.2 megawatt power generation asset on\n \n September 29\n \n , 2020.   Approximately 750 mcf/d of natural gas from the Company's Countess producing wells is currently being consumed by the generators.  In addition, Journey sold a minor, non-core asset in the Telfordville,\n \n Alberta\n \n area in a separate transaction.\n \n \n Production from all assets being sold is approximately 8,900 mcf/d and 90 bbl/d of liquids (oil and natural gas liquids).  In addition to the power project the sold assets include 455 gross (439 net) wells, and have associated asset retirement obligations of approximately\n \n $30 million\n \n (uninflated and undiscounted).  Closing of both asset sales is expected to occur on or before\n \n December 15, 2020\n \n , and is not subject to any government approvals.\n \n \n In addition, the Company has been proactive in reducing its cost structure to be more representati...