Gale Force Petroleum Inc. (TSXV: GFP, OTC: GFPMF) entered an agreement to sell an 81% working interest in some Texas properties, the company said July 24.
The company’s Texas Reef properties in Henderson and Anderson counties, will be sold alongside a 90% interest in a four-mile natural gas gathering system for US$5.9 million, the Toronto-based company said.
The unidentified purchaser is a “private [exploration and production] E&P operator” working in the southern U.S., Gale Force said, adding that the purchaser drilled eight wells--six vertical and two horizontal--near the Texas Reef properties.
The transaction is scheduled to close Aug. 22, Gale Force said.
The net proceeds should reduce the senior bank facility by $2.5 million, the company predicted, adding that they should also pay off outstanding subordinate notes and leave about $2.5 million for capital development programs.
Under the agreement, Gale Force will retain an average 12% working interest and a 3% overriding royalty interest in four producing wells on the properties, the company said.
Gale Force also will retain an average 9% working interest and a 5% overriding royalty interest on its remaining 3,500 undeveloped net acres, the company noted.
Recommended Reading
Some Payne, But Mostly Gain for H&P in Q4 2023
2024-01-31 - Helmerich & Payne’s revenue grew internationally and in North America but declined in the Gulf of Mexico compared to the previous quarter.
Uinta Basin: 50% More Oil for Twice the Proppant
2024-03-06 - The higher-intensity completions are costing an average of 35% fewer dollars spent per barrel of oil equivalent of output, Crescent Energy told investors and analysts on March 5.
In Shooting for the Stars, Kosmos’ Production Soars
2024-02-28 - Kosmos Energy’s fourth quarter continued the operational success seen in its third quarter earnings 2023 report.
M4E Lithium Closes Funding for Brazilian Lithium Exploration
2024-03-15 - M4E’s financing package includes an equity investment, a royalty purchase and an option for a strategic offtake agreement.
California Resources Corp. Nominates Christian Kendall to Board of Directors
2024-03-21 - California Resources Corp. has nominated Christian Kendall, former president and CEO of Denbury, to serve on its board.