Vanguard Energy Corp., an oil development and production company, announced Friday that it has entered into an agreement with an unrelated third party to sell all of Vanguard's working interests and related equipment at its only operating field, the Batson Dome Field in southeast Texas, for a gross price of $5,500,000. The transaction is subject to approvals of Vanguard's shareholders and the holders of its secured convertible notes in the principle amount of $8,254,500 and is expected to close by the end of May 2014 and be effective as of April 1, 2014.
Warren Dillard, president of Vanguard Energy, said, "This sale has been contemplated by the Company for some time and is the culmination of efforts by the Company to determine whether to continue operations or sell its assets at the best price possible. All of the net proceeds of the sale will be used to pay down the principle of our outstanding secured debt obligations. Further discussions with the note holders will follow regarding what will be done to satisfy the remaining unpaid balances of principle and unpaid interest."
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