* Says sale to reduce debt by 38 pct
* Deal expected to close by March 22 (Adds details)
Feb 17 (Reuters) - Oil and gas explorer Fairborne Energy Ltd said it will sell some of its assets in the Canadian province of north and west central Alberta to Deethree Exploration Ltd for C$125 million to reduce debt.
The properties, based in the Peace River Arch and Brazeau area of Alberta, currently produce about 1,830 barrels of oil equivalent per day, with natural gas comprising about 60 percent of this output.
The sale will likely reduce debt by 38 percent, Fairborne said in a statement. As of Sept. 30, Fairborne's debt was about C$194 million.
The sale of these assets, which represent 11 percent of Fairborne's 2010 exit volumes, is expected to close by March 22.
Shares of Calgary, Alberta-based Fairborne closed at C$5.16 on Thursday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar;Editing by Vyas Mohan)