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Spyglass Resources Corp. Announces $100 Million Asset Sale, 2015 Budget, Suspension of the Dividend, Update on Corporate Strategy and Revision of Credit Facility
Spyglass Resources Corp. Announces $100 Million Asset Sale, 2015 Budget, Suspension of the Dividend, Update on Corporate Strategy and Revision of Credit Facility.
About this update from Spyglass Resources Corp
[{"type":"text","content":"\n \n \n Spyglass Resources Corp. Announces $100 Million Asset Sale, 2015 Budget, Suspension of the Dividend, Update on Corporate Strategy and Revision of Credit Facility\n \n \nSpyglass Resources Corp. Announces $100 Million Asset Sale, 2015 Budget, Suspension of the Dividend, Update on Corporate Strategy and Revision of Credit Facility\n \n CALGARY, ALBERTA--(Marketwired - Dec 16, 2014) - \n All values are in Canadian dollars unless otherwise indicated. Conversion of natural gas volumes to barrels of oil equivalent (boe) are at 6:1.\n Spyglass Resources Corp. (\"Spyglass\", or the \"Company\") (TSX:SGL)(OTCQX:SGLRF) announces $100 million sale of 50 percent working interest in its Dixonville Montney \"C\" oil property, 2015 capital budget, suspension of the dividend and intention to commence a normal course issuer bid (the \"Issuer Bid\"). These initiatives allow the Company to manage through challenging market conditions and reduce leverage, while positioning the Company to develop our organic growth opportunities. \n Dixonville Asset Sale \n Spyglass has signed a purchase and sale agreement with a wholly owned subsidiary of Eagle Energy Trust (\"Eagle\") for a non-operated 50 percent working interest in the Dixonville Montney \"C\" oil pool for cash consideration of $100 million prior to normal closing adjustments. The sale is expected to close prior to the effective date of January 1, 2015. The proceeds will be used to reduce bank debt and will reduce annual interest expense by approximately $5 million. \n Based on the McDaniel & Associates Consultants Ltd. December 31, 2013 reserve report, the property (at 100% working interest) was assigned proved developed producing reserves of 15.1 MMboe, total proved reserves of 15.4 MMboe and proved plus probable reserves of 21.1 MMboe. \n To date, Spyglass has restarted approximately 2,500 bopd of production with full capability expected to be reached early in the first quarter of 2015. At year-end the Dixonville Montney \"C\" oil field is expected to be producing approximately 2,600 bopd. The sale represents production metrics of $80,000 per flowing barrel. \n Dixonville is an elite, low decline oil producing asset under full waterflood with strong free cash flow. Retaining a 50 percent working interest in the property allows the Company to reduce debt while retaining a portion ...