The LOI proposes the sale of all of Aspen's U.S. oil and gas production and reserves, which equates to approximately 600 boepd (3,600 mcfepd) of production and approximately 4.4 million boe (26.4 bcfe) of proven reserves. Aspen's wholly owned subsidiary United Cementing and Acidizing Co. is not included in the sale. The reserves are approximately 88 percent natural gas.
"As we have stated before, our goal is to turn Aspen into a profitable, growing company. As part of that process, we have reviewed every aspect of the Company's operations and evaluated all of our assets in order to determine the best course for achieving that goal," commented Robert Calentine, CEO of Aspen. "By monetizing the U.S. assets, we are able to eliminate our long-term debt, add significant cash to our balance sheet, and move forward with a corporate strategy that enables us to control our own destiny."
Crusader Energy Corporation is a new entity funded by an equity investment made by Kayne Anderson Capital Advisors, L.P. and David D. LeNorman.
Aspen Group Resources Corporation is an independent oil and natural gas producer engaged in the acquisition, exploration, and development of oil and natural gas properties in North America. Aspen's shares trade on The Toronto Stock Exchange under the symbol "ASR".
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