Vintage Petroleum Proceeds with Planned Divestiture Sale
Vintage Petroleum, Inc. has signed a definitive agreement to sell all its holdings in Trinidad and Tobago to Vermilion Resources Ltd. for approximately US$40 million, subject to customary conditions precedent to closing, working capital and other post-closing adjustments. Closing is anticipated to occur by the end of June. Proceeds from the sale of its Trinidad oil and gas interest will be applied toward meeting a previously announced plan to reduce the company's long-term debt by $200 million and to rebalance its portfolio toward North America through a combination of the sale of non-strategic assets in Trinidad and Ecuador and the application of cash flow in excess of capital expenditures. In addition, Vintage plans to open data rooms in the U.S. and U.K. within a week, initiating the sale process for its oil and gas assets in Ecuador.
"We are pleased with the rapid progress made to date toward our plan to reduce debt by $200 million by year-end 2002 and the high level of interest in our announced asset divestitures," said S. Craig George, CEO of Vintage.
Vintage's Trinidad assets are located onshore in the Central Block portion of the southern basin. At year-end 2001 proved reserves were 64.4 Bcf of gas and over one million barrels of condensate or 11.9 million BOE. "We are successfully capturing asset value from the discoveries made during 2001, allowing the company to meet its debt reduction goals and to intensify its focus on other growth opportunities in its inventory. The long-term benefits associated with the development of the gas markets in Trinidad are a better strategic fit for other companies," indicated Mr. George.