Pine Cliff Energy Ltd. (TSX:PNE) is pleased to announce that it has entered into an agreement to sell a non-core oil asset (the "Disposed Assets") for $31.4 million, prior to any closing adjustments (the "Disposition"), consisting of approximately $26.4 million in cash and approximately $5.0 million in TSX-listed common shares of the purchaser.
The Disposed Assets include approximately 500 barrels of oil equivalent per day of production weighted 94% to oil located in the Viking area of Central Alberta. The Disposition will have an effective date of November 1, 2016 and is expected to close on or around December 7, 2016 (the "Closing") with the net proceeds from the Disposition being used to pay down Pine Cliff's bank indebtedness. Pine Cliff anticipates that it will decrease its credit facility as a result of the Disposition, further details of which will be announced at Closing. The purchase and sale agreement related to the Disposition is subject to standard customary closing conditions. Listing of the common shares to be received as partial consideration for the Disposition on the TSX is subject to the approval of the TSX.
Pine Cliff is pleased to announce that Kristi Kunec has returned to the position of Chief Financial Officer and Corporate Secretary following a one year leave of absence. Pine Cliff is also pleased to announce the promotions of Cheryne Lowe to the position of Vice President, Finance and Heather Isidoro to the position of Vice President, Business Development. Ms. Lowe joined Pine Cliff in October 2015 and previously held the position of Interim Chief Financial Officer and Secretary. Ms. Isidoro joined Pine Cliff in September 2013 as Manager, Business Development.