The disposed assets were comprised of the 1% gross overriding royalty interest previously retained on 42 net sections (27,722 net acres) of undeveloped oil sands leases in northeast Alberta sold in June 2015 and March 2016. Approximately 5,700 boe of royalty interest reserve volume representing $0.2 million of reserve value was assigned to the royalty lands in the Company’s third-party engineering report prepared by McDaniel and Associates Consultants Ltd. (“McDaniel”) as at December 31, 2017. The royalty interests sold contributed less than $0.05 million to adjusted funds flow during the first quarter of 2018. The effective date of the transaction is May 1, 2018.

Proceeds from the disposition will be used to reduce the outstanding balance of the Company’s reserve-based credit facility. After giving effect to the disposition and the current market value of the Company’s Tourmaline Oil Corp. (“TOU”) share investment, the Company had available liquidity at March 31, 2018 of approximately $43.2 million.

Source: Company Press Release