UPDATE: Advantage Down 1.5% As Provides Update on Disposition of Non-Core Assets
Advantage Oil & Gas Ltd. (AAV.TO), which rose nearly 4% Thursday, has lost 1.5% today as it provided an update on its non-Core Asset Disposition to Questfire Energy Corp. (Q-A.V, Q-B.V).
- The previously announced transaction with Questfire Energy Corp. for the sale of substantially all of Advantage's remaining non-core assets consisting of approximately 5,900 boe/d of production has been modified as follows:
- The transaction is now anticipated to close on or before April 30, 2013 and is subject to satisfaction of customary closing conditions
- The consideration will consist of $40 million of cash, a $44 million Convertible Senior Secured Debenture and 1.5 million Class B shares. All net revenues accruing as part of customary closing adjustments between the effective date of November 1, 2012 and the closing date will be paid to Advantage in cash thereby reducing the principal amount of the debenture.
- Advantage retains an option to appoint two board members to the Board of Directors of Questfire Energy Corp.
- The net cash proceeds from this transaction will be used to reduce outstanding bank indebtedness.
- Upon closing of the non-core asset dispositions, Advantage's major assets will consist of our signature Glacier Montney property, our 45% interest in Longview Oil Corp. and the Questfire Debenture.
- Advantage's credit facility will be revised due to the non-core asset dispositions and is currently under review.
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