CALGARY, July 1, 2015
/CNW/ - Argent Energy Trust ("Argent" or the "Trust")
(TSX: AET.UN) is pleased to announce it has closed the
previously announced sale of its interests in Oklahoma and Kansas ("Mid-Continent") for gross proceeds of
US$20 million, subject to ordinary
closing adjustments.
Argent's interests included in the sale included approximately
19,500 gross (13,600 net) acres and 88 active oil wells, with
average working interest production of approximately 548 boe/d
barrels of oil equivalent per day ("boe/d") before royalties during
the first quarter of 2015. The transaction has an effective
date of January 1, 2015.
This transaction represents the second asset sale by Argent in
accordance with its previously announced strategy to manage through
the challenging market conditions and maintain financial
flexibility, following on from the sale of its interests in the
Manvel Field, Texas for gross
proceeds of US$20.5 million
that closed in May. The net proceeds from both sales were
used to pay down amounts drawn on Argent's credit facility.
Furthermore, in conjunction with the closing of the
Mid-Continent sale, Argent renewed its credit facility with its
existing banking syndicate with an amended borrowing base of
US$80 million, upon which Argent is
currently US$68.5 million drawn.
Note regarding barrel of oil equivalency
Barrels of oil equivalent (boe) may be misleading, particularly
if used in isolation. A boe conversion ratio of six Mcf to
one bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and do not represent a value
equivalency at the wellhead. Given that the value ratio based
on the current price of oil as compared to natural gas is
significantly different from the energy equivalency conversion
ratio of six to one, utilizing a boe conversion ratio of six Mcf to
one bbl may be misleading as an indication of value.
Argent is a mutual fund trust under the Income Tax Act
(Canada) (the "Tax Act").
Argent's objective is to create stable, consistent returns for
investors through the acquisition and development of oil and
natural gas reserves and production with low risk exploration
potential, located primarily in the United States. Material
information pertaining to Argent Energy Trust may be found on
www.sedar.com or www.argentenergytrust.com
SOURCE Argent Energy Trust