Stratic Energy has signed an agreement for the sale of its Turkish business to a group of local Turkish companies.
The total cash received from the deal will be $3.45m, of which $2.4m has already been paid to Stratic by its Turkish subsidiary Stratic Energy Turkey (SETI) during the current year, $0.55m is payable on completion and $0.5m is due in December 2010.
The purchasers will acquire all the assets and liabilities of SETI on completion, which is expected in mid May 2010.
Stratic president and CEO Kevin Watts said the sale of our Turkish business is a further step in our restructuring program and provides us with a clean exit from the region.
"In addition, it frees up capital of nearly $20m for investment in higher return activities elsewhere in Stratic’s business that would otherwise have been spent on the next phase of development in Turkey,” Watts said.
Stratic Energy Corporation is a Canadian incorporated international oil and gas business which is engaged in the appraisal, development and production of petroleum and natural gas discoveries, supplemented by an exploration program.