CALGARY, ALBERTA--(Marketwire - Aug. 3, 2010) - Further to its press release of June 1, 2010, Argosy Energy Inc. (the "Corporation") ("Argosy") (TSX:GSY), is pleased to announce that it has entered into an agreement to dispose of the Corporation's oil and gas interests in the Saxon area of Alberta. The consideration to be paid to Argosy under the agreement is $16.6 million subject to closing adjustments. Closing is expected to occur later in August 2010. Peters & Co. assisted the Corporation in connection with the transaction.
The decision to rationalize this property came as a result of the Corporation's review of its exploration projects. The rationalization will streamline operational activities and provide additional funds to further the exploitation of the Claresholm, Pearce and Edson areas.
The price looks decent(about $970 per acre), Argosy loses only 200 boes of production and the balance sheet will be much healthier after the transaction closes.
4 comments:
Do you know what could be found at Pierce? There have to be some reason why someone is paying such amounts of land package.
Some of the media has suggested that the buyer is after the Bakken-Exshaw. The land is in the middle of the so called Bakken fairway that's marked on the maps in the presentations of Bowood Energy and Deethree Exploration.
Yes it is over southern end of Exshaw. They are after gas? Which seems odd considering purchase price of land package.
The hydrocarbons are in liquid form near the border, but that doesn't mean that is the case near Lethbridge. Who ever bought the rights most certainly isn't a junior.
Rosetta has published a new presentation
http://www.rosettaresources.com/downloads/August%20Presentation%20-%20FINAL.pdf?eventid=77924
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