Pyramid Petroleum Inc. has agreed to sell all of its 5.84% interest in its Montana and Alberta properties for $6.3 Million USD to an arms-length company. The properties contributed a net 130 boepd to Pyramid. Concurrent with the sale, Pyramid also purchased a 25% working interest in Brazos 440 block in Gulf of Mexico for a purchase price of $1.5 million of which $500,000 was paid in cash and the remaining $1.0 million is financed by the Seller on a non-recourse 3 year loan of $1.0 million with an interest of 8% paid monthly. The Brazos 440 block is producing a net 45 boepd with significant potential in additional well bores.
Pyramid shall utilize the sale funds for participation on selected exploration projects and payment of bank and other debts.
CEO Ilyas Chaudhary added, "The sale and the purchase are in line with Pyramid's objective to focus in the Gulf of Mexico. Pyramid continues to build its assets in the Gulf of Mexico as a primary core area while seeking other regions where Pyramid may have a strategic advantage."
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