JED has signed an agreement to sell the oil and gas assets held by the Company and its two wholly-owned subsidiaries, JED Production Inc. and JED Oil (USA) Inc. located in the Ferrier and Wizard Lake areas of Alberta and Pinedale area of Wyoming.
The buyer of the Alberta assets is a private Alberta oil and gas company, and the Wyoming assets will be purchased by a US limited partnership operated by a wholly-owned subsidiary of the Alberta company. The consideration for the assets is $4,067,500.00, payable as to $2,817,500 in cash and $1,250,000 by the issuance of 550,000 common shares of the Alberta company.
The assets consist of most of the Company's non-core assets and the proceeds will be used as part of JED's reorganization under the creditor protection terms of the Companies' Creditors Arrangement Act (Canada). Closing of the sale is subject to Court approval and is required to occur before year-end.
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