Calgary, Alberta: September 4, 2019 – 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”).
• 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.