PanTerra Resource Corp. (PRC.V) announces that it has closed the
first tranche of an asset sale at its Carrot Creek property that
was previously announced on June 4, 2013.
The first tranche consists of the sale of 60% of the Proven
Producing Reserve asset for a price $1,096,688.
Transaction metrics of the Proven Producing portion of the sale
is $45,700 per flowing barrel. This is based on 60% of the current
proven producing rate of 40 BBls per day (net 24 BBls per day).
The proceeds of the disposition will be applied to reduce
indebtedness under PanTerra's current credit facilities.
The second tranche for 60% of the probable reserves and
facilities is expected to close on or before July 22, 2013 and will
be used to further retire debt and for go-forward projects.
The Transaction involves a non-arm's length party as Geoffrey
Baker is a director of the both the vendor and the purchaser. The
Company has received conditional approval of the TSXV for this
Pan Terra also announces that as a result of the disposition and
with the retirement of a major portion of debt it anticipates that
a reduction in its revolving line will take place and is in ongoing
negotiations with its banker to determine the new terms.
Pan Terra is just above a yr low of 3 cents.
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