Cuda has disposed of all of its petroleum and natural gas rights in Quebec (the "Assets") which includes all land permits, licenses and production rights and interests in the Province as well as all tangible assets including drilling and related equipment associated with the Assets
Image: Cuda Oil and Gas announces closing of sale of its Quebec assets. Photo: courtesy of drpepperscott230 from Pixabay.
Cuda Oil and Gas Inc. (“Cuda” or the “Company”) (TSXV: CUDA) is pleased to announce that it has closed Asset Purchase Agreements (the “APAs”) to sell all of its oil and gas assets and related liabilities located in the Province of Quebec (“Quebec”) at a total transaction value of CAD $10.59 million, including cash consideration at closing of CAD $4.29 million, to arm’s-length purchasers (the “Transaction”).
Highlights:
Cuda has disposed of all of its petroleum and natural gas rights in Quebec (the “Assets”) which includes all land permits, licenses and production rights and interests in the Province as well as all tangible assets including drilling and related equipment associated with the Assets;
The purchasers assumed all environmental liabilities, including abandonment and reclamation obligations, associated with the Assets in Quebec, estimated by the parties at CAD $3.2 million;
The purchasers paid CAD $4.29 million to Cuda in cash consideration; and
Cuda has been released and discharged from a pending CAD $3.1 million claim associated with the exercise of dissent rights in connection with the plan of arrangement of the Company completed August 15, 2018.
KES 7 Capital Inc. (“KES 7”) acted as a financial advisor to the Company. Pursuant to TSXV requirements, KES 7 has confirmed that it is an arm’s-length party to Cuda and the purchasers.
Glenn Dawson, President and Chief Executive Officer of Cuda stated: “This is a significant transaction for Cuda shareholders in its magnitude and strategic creation of a pure play company in the Powder River Basin which has been described as the ‘Permian of the Rockies’.
“Moving forward, Cuda will focus on development of the Company’s high netback conventional light oil assets and Secondary Recovery Miscible Gas Flood in Converse County, Wyoming. Cuda’s contiguous Powder River Basin lands contain multiple defined opportunities to access and develop low risk proven conventional reservoirs. We are excited about the opportunity in Wyoming and we look forward to updating investors on our progress shortly.”
In addition, Cuda announces that it has retained Independent Trading Group (“ITG”) to provide market making services in accordance with TSX Venture Exchange policies.
ITG will trade the securities of the Company on the TSX-V for the purposes of maintaining an orderly market. In consideration of the services provided by ITG, the Company will pay ITG a monthly cash fee of $5,000 for a minimum term of three months, and renewable thereafter. Cuda and ITG are unrelated and unaffiliated entities. ITG will not receive shares or options as compensation. The capital used for market making will be provided by ITG.
Source: Company Press Release