DGAP-News: Activa Resources raises USD 4.5 million in cash through partial OSR-Halliday sale
(firmenpresse) - Activa Resources AG / Key word(s): Disposal/Miscellaneous
22.09.2010 09:08
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Activa Resources raises USD 4.5 million in cash through partial
OSR-Halliday sale
- Transaction allows Activa to fund drilling at OSR-Halliday and other
key assets and to de-leverage
- Company retains 69 % of its interest in OSR-Halliday and is therefore
positioned for further value creation through the horizontal drilling
programme
Bad Homburg, 22nd September 2010. Activa Resources AG announces that it has
sold a 10 % working interest in the OSR-Halliday oil field in East Texas
for USD 4.5 million in cash. The sale is a first step towards
recapitalising the company and continuing the development of its key oil
and gas assets. In particular, the transaction provides Activa with the
funds to participate in the initial phase of the horizontal drilling
programme at OSR-Halliday. In addition, approx. USD 1.2 million of the
proceeds will be immediately used to reduce Activa's borrowings at the
subsidiary level.
Drilling of the first horizontal well has commenced and production testing
will be carried out in the coming weeks and months. The company is
retaining the majority (69 %) of its interest in OSR-Halliday and will
continue to drive the technical work in the field.
After a thorough review of several financing proposals from reputable US
institutional investors management decided on a partial asset sale of its
interest in the OSR-Halliday field. Interest from major institutional
groups to work with Activa supports the quality of Activa's asset base and
the competence of the management and technical team.
Activa originally purchased its 32.12 % working interest in the field as
part of the 2007 acquisition of New Tuleta Energy Partners for USD 5.0
Million (USD 2.4 million in cash and USD 2.6 million in shares). Since then
Activa has generated over USD 5 million in net revenues from its interest
in OSR-Halliday alone. With the transaction announced today Activa has
raised a further USD 4.5 million in cash from the asset while retaining a
22.12 % interest that has significant upside value. The New Tuleta
acquisition has proved a major success for Activa.
The purchaser of the interest is Five States Energy Capital, LLC
(www.fivestates.com), a Dallas-based oil and gas capital provider and
investment company. Activa and Five States consider this transaction a
first step towards a broader collaberation to develop the oil and gas
reserves at OSR-Halliday as well as several other assets within Activa's
portfolio.
Leigh A. Hooper, Activa's CEO, adds: 'In addition to significantly
improving our liquidity situation and debt-equity ratio with this
transaction, we have created significant value for our shareholders. The
most important impact, however, is that we can now move forward with our
projects and kick-start our drilling programmes after a two-year hiatus'.
The Management Board
Enquiries: Leigh A. Hooper, CEO, Tel. + 49 6172 483 2352
About Activa Resources AG
Activa Resources AG is an independent oil and gas company which focuses on
the acquisition, development and exploitation of oil and natural gas
properties. Activa Resources AG is listed on the Frankfurt stock exchange
and is based in Bad Homburg, Germany. The company's management and
technical team comprise oil industry experts with many years operational
experience at major international oil companies. Further information can be
found at www.activaresources.com.
Forward-looking statements
This news release includes forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning estimates
of expected drilling and development wells and associated costs, statements
relating to estimates of, and increases in, production, cash flows and
values and other statements which are not historical facts. When used in
this document, the words such as 'could,' 'plan,' 'estimate', 'expect',
'intend', 'may', 'potential', 'should' and similar expressions are
forward-looking statements. Although Activa believes that its expectations
reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be given
that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to differ
from these forward-looking statements include the potential that the
Company's projects will experience technological and mechanical problems,
that geological conditions in the reservoir may not result in commercial
levels of oil and gas production, that changes in product prices can have a
material impact and that Activa fails to raise sufficient capital to
adequately fund its activities.
22.09.2010 09:08 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
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Datum: 22.09.2010 - 09:08 Uhr
Sprache: Deutsch
News-ID 32232
Anzahl Zeichen: 0
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Kategorie:
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