Did you know?
You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)
CTA sale of non-core properties
Jan 01, 2010 06:52AM
"12/31/2009 6:00:30 AM - Market Wire
CALGARY, ALBERTA, Dec 31, 2009 (Marketwire via COMTEX News Network) --
Crocotta Energy Inc. ("Crocotta" or the "Company") (TSX:CTA) is pleased to announce that it has agreed to sell various non-core properties for $33 million. Production from these assets totalled approximately 880 boepd. Crocotta reasonably expects that the sales of these assets will reduce its proved reserves by approximately 1.83 million boe and reduce its proved plus probable reserves by approximately 2.49 million boe. This equates to sales metrics of $37,500 per boepd, $17.95 per boe based on proved reserves or $13.24 on a proved plus probable basis. The sales are comprised of seven separate transactions that are anticipated to be substantially completed by January 31, 2010.
Crocotta has also signed a new bank credit facility for $58 million and an extension to its existing bridge credit facility to early February 2010. Closing of the bank credit facility is conditional on completion of the asset sales described above and the retirement of the bridge facility. Once all of the asset sales are completed, Crocotta will have approximately $50 million net debt and will have retired the bridge facility.
Crocotta estimates current production net of the asset sales described above to be 2,400-2,500 boepd comprised of 67% natural gas and 33% light oil and natural gas liquids.
Crocotta will now actively pursue the development of its core resource plays in the Montney, Bluesky and Cardium formations. Further information on the scope and timing of such projects is expected to be released prior to the end of January 2010. "
**Updates could be more frequent in 2010? Looks that way. Debt reduction, Natural Gas prices over $5.00, CTA starting 2010 looking better.