BRIEF-Arsenal Energy announces sale of its U.S. properties

Fri May 27, 2016 9:29am EDT
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May 27 (Reuters) - Arsenal Energy Inc :

* Sale of all its oil and natural gas properties located in united states for a sales price of US $34 million

* Deal for $34 million

* Proceeds from sale have been used to reduce company's outstanding bank credit facility

* Announces that it has entered into a letter of intent to sell 250 boe/d of Canadian production for total proceeds of $8.7 million

* Upon successful completion of sale transaction, Arsenal will have repaid approximately $70 million of bank indebtedness

* Arsenal will retain its core Princess, Alberta property as well its Provost and EVI properties

* Pro forma, upon successful completion of property sales, production is estimated to be approximately 1,250 boe/d

* After applying net proceeds of sale, Arsenal estimates its current bank debt at approximately $11.7 million

* Arsenal Energy Inc announces sale of its us properties Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +1-646-223-8780)