The transaction has a value of $9.3 million plus a positive working capital adjustment of approximately $2.0 million. The transaction has an effective date of February 1, 2004 and excludes the outstanding Ecuador Value Added Tax ("VAT") receivable. The disposition will bring the Company's working capital surplus to approximately $33 million (of $0.39/share basic/fully diluted) as of March 31, 2004.
ALBERTA OPERATIONS UPDATE
The Company is pleased to announce the successful tie-in of its two new Kakwa wells in northwest Alberta. The current average daily production for Alberta is now in excess of 1,200 boe/d. The Company has appointed the independent reservoir engineers Gilbert Lausten Jung to complete a more comprehensive review of the reservoir encountered by the two wells with the intention of updating the current reserves information available for review as part of the value maximization process currently underway with Waterous & Co.
Data rooms have been opened in Calgary, Houston and Buenos Aires with a scheduled deadline of April 29, 2004 for accepting bids for the wholly-owned Argentine company plus producing assets as well as independently or collectively, the Canadian company plus producing assets.
The Company regrets to acknowledge the departure of Mr. Bill Ibbitson from the executive team. His contribution to the Company, in the role of General Manager - Latin America & COO, based in Quito, Ecuador, was highly valued as he was instrumental in overseeing all operations in South America. With the sale of the Ecuador property, Mr. Bill Ibbitson has chosen to leave the executive team at this time. We wish him success in future ventures.
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