NiMin to Sell Off Calif. San Joaquin Assets
NiMin Energy announced Friday it and its wholly-owned subsidiary, Legacy Energy, have entered into a definitive agreement for the sale of its assets in California's San Joaquin Basin to Southern San Joaquin Production, LLC for a total cash consideration of approximately $27 million, subject to adjustment.
The sale of the California Assets is subject to customary closing conditions, including approval by NiMin shareholders for the sale of all or substantially all of the assets of the Company.
Asset Sales and Proceeds
The sale of the California Assets is in addition to the recently announced sale of the Company's assets in Wyoming's Big Horn Basin resulting in combined gross proceeds of approximately $125 million, subject to adjustment.
Macquarie Tristone was the exclusive advisor to NiMin and Legacy in connection with the sale of the Wyoming Assets and the California Assets.
The Company will proceed with the Asset Sales and the liquidation and dissolution of NiMin and Legacy upon receipt of all required regulatory and shareholder approvals. After the payment of the liabilities of NiMin and Legacy, which are currently estimated to be between approximately $52.6 to $55.1 million, NiMin intends to distribute the net proceeds of the liquidation and dissolution of both corporations to NiMin shareholders in one or more distribution installments.
Upon completion of the asset sales, the net proceeds available for distribution are currently estimated to be between $70.3 million to $72.8 million.
Although management of the company believes that the estimates of the liabilities and net proceeds for distribution set forth above are reasonable based on information currently available to the company, the actual amounts of such liabilities and resulting net proceeds available for distribution may differ materially from the estimates presented above, thereby affecting the amount of cash available to be distributed to shareholders.
The board of directors of the company is not currently aware of any material items that could give rise to unforeseen tax liabilities or other liabilities or costs which would materially reduce the amount of cash available for distribution to shareholders, but there is no assurance this will remain the case.
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