Arsenal Energy Inc. has jettisoned all its U.S. oil and natural gas properties, including Bakken Shale assets, to pay down debt.
The Calgary, Alberta-based company said May 27 it sold its U.S. assets to an undisclosed company for US$34 million.
Arsenal operates three prospect areas with Bakken/Three Forks production in the Williston Basin in Montrail, Williams and Burke counties, N.D.
Proceeds have been used to reduce its outstanding bank credit facility. Arsenal estimates its current bank debt following the sale at about C$11.7 million.
In addition, Arsenal said it has entered a letter of intent to sell 250 barrels of oil equivalent per day of Canadian production for C$8.7 million.
The transaction is expected to close by June 30. Upon closing, the company will have repaid about C$70 million of bank debt over an 18-month period.
Recommended Reading
Exclusive: As AI Evolves, Energy Evolving With It
2024-02-22 - In this Hart Energy LIVE Exclusive interview, Hart Energy's Jordan Blum asks 4cast's COO Andrew Muñoz about how AI is changing the energy industry—especially in the oilfield.
Exclusive: Tenaris’ Zanotti: Pipes are a ‘Matter of National Security’
2024-04-12 - COVID-19 showed the world that long supply chains are not reliable, and that if oil is a matter of U.S. national security, then in turn, so is pipe, said Luca Zanotti, U.S. president for steel pipe manufacturer Tenaris at CERAWeek by S&P Global.
Chesapeake, Awaiting FTC's OK, Plots Southwestern Integration
2024-04-01 - While the Federal Trade Commission reviews Chesapeake Energy's $7.4 billion deal for Southwestern Energy, the two companies are already aligning organizational design, work practices and processes and data infrastructure while waiting for federal approvals, COO Josh Viets told Hart Energy.
Exclusive: Chevron New Energies' Bayou Bend Strengthens CCUS Growth
2024-02-21 - In this Hart Energy LIVE Exclusive interview, Chris Powers, Chevron New Energies' vice president of CCUS, gives an overview of the company's CCS/CCUS activity and talks about the potential and challenges of it onshore-offshore Bayou Bend project.
Exclusive: Sabine CEO says 'Anything's Possible' on Haynesville M&A
2024-04-09 - Sabine Oil & Gas CEO Carl Isaac said it will be interesting to see what transpires with Chevron’s 72,000-net-acre Haynesville property that the company may sell.