Terra Energy has successfully completed the previously announced sale of its non-operated interests in the Boundary Lake Units 1 and 2 for gross proceeds of approximately $24 million, subject to post closing adjustments.
Under the terms of the sale, Terra Energy sold its 2.3515 percent unit interest in Boundary Lake Unit 1 and its 4.7129 percent unit interest in Boundary Lake Unit 2. Current unit interest production related to the sale is approximately 140 barrels of oil equivalent ("boe") per day with proved plus probable reserves of approximately 1.6 million boe resulting in deal metrics of more than $171,000 per flowing boe and $14.41 per boe of proved plus probable reserves.
The proceeds of the sale will lower the Corporation's overall net indebtedness, and will be available for redeployment for future development projects or acquisitions of reserves that are anticipated to provide higher levels of production and create incremental value for Terra Energy shareholders.
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