Pacific Energy Resources Ltd. is pleased to announce the execution of definitive agreements to sell 100% of its onshore California producing assets, which include interests in the Los Angeles Basin and the San Joaquin Basin for $135 million in cash.
The effective dates of the transactions are January 1, 2008 for the Los Angeles Basin assets and May 1, 2008 for the San Joaquin Basin assets. The Corporation's estimated proved reserves for these assets totaled approximately 10 million barrels of oil, and for 2007 the production from the assets averaged approximately 900 barrels of oil per day, or 12% of the Corporation's current daily production.
The majority of the proceeds will be used to pay down outstanding corporate debt. The LA Basin portion of this transaction is expected to close on or around June 15, 2008, and the San Joaquin portion on or around June 20, 2008 subject to customary closing conditions and adjustments.
"We are pleased to announce these agreements and feel this is an attractive valuation and highlights the nature and value of our continuing production and reserve base," said President Darren Katic.
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