CALGARY and LONDON, July 22 /CNW/ - Stratic Energy Corporation (TSX Venture: 'SE', AIM 'SE.') ("Stratic" or the "Company") is pleased to announce the sale of its 10% interest in the UK North Sea Breagh gas field, and its interests in associated exploration licenses, to RWE Dea UK SNS Limited, a subsidiary of RWE Dea AG ("RWE Dea"), an international upstream company with its headquarters in Hamburg, Germany. The consideration receivable is cash of approximately US$61.751 million, plus working capital adjustments, payable on completion expected to occur in the approximately 4-6 weeks. The sale is part of a consortium sale of 70% of Breagh, and completion of the sales is subject, to consent of the Secretary of State for Energy and Climate Change. Stratic intends to use the proceeds of sale to reduce borrowings and to fund ongoing operational expenditure.
Stratic acquired its interest in the Breagh field with the purchase of Grove Energy in 2007, and has since participated in 3 appraisal wells to delineate the field. The decision to sell, in conjunction with partners, was taken early this year in the light of the considerable future development costs needed to bring the field on-stream, and as part of Stratic's previously announced disposals programme to strengthen its finances. The licenses being sold are in respect of blocks 42/12a & 42/13a which include the Breagh field, blocks 42/8, 42/9 and 42/14 (all Stratic 10%), 42/10 and 42/15 (both Stratic 20%).
Stratic and its partners were advised on the sale by Standard Chartered Bank.
Kevin Watts, President and Chief Executive Officer, said: "we are delighted with the outcome of this sale process. The proceeds will enable us to pay down our pre-development debt facility earlier than originally envisaged, normalise our ongoing banking arrangements and move forward with our North Sea development programme. In addition, we are currently drilling in the UK North Sea on the Bowmore discovery with the results of this important well expected next month, and we are preparing to drill a gas exploration well in Syria later this year".
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.
About Stratic:
Stratic Energy Corporation is a Canadian-incorporated international oil and gas business focused on adding value principally through the appraisal, development and production of existing discoveries, supplemented by a low to moderate risk exploration program. Stratic's principal interests are in the UK and Dutch sectors of the North Sea, Italy, Turkey and Syria. Its shares are listed on the TSX Venture Exchange in Toronto and on AIM, London and its principal operating office is in London, UK.
Forward-looking statements
This news release contains certain forward looking statements, which involve assumptions with respect to future plans, production levels and results, and capital expenditures. The reader is cautioned that all such forward looking statements involve substantial risks and uncertainties and the assumptions used in their preparation may not prove to be correct. Stratic's actual results could differ materially from those expressed in, or implied by, these forward looking statements and accordingly, the forward looking statements are qualified by reference to these cautionary statements. The forward looking statements contained herein are made as at the date of this news release. Stratic undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.
TSXV and AIM notifications
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.
Stratic's Chief Operating Officer, Dr Mark Bilsland BSc (geology), PhD (petroleum petrophysics), and member of the SPE, is the qualified person who has reviewed and approved the technical information in this announcement for the purposes of the AIM Rules for Companies (incorporating the Guidance Note for Mining, Oil and Gas Companies).