Painted Pony Energy Ltd. has entered into a definitive agreement to sell a 75% working interest in 11,280 gross acres (8,460 net acres) in the northeast British Columbia Montney for cash consideration of $45 million.
The proposed transaction, which is expected to close on or about Oct. 31, 2019, is subject to closing conditions. The buyer was not disclosed.
The acreage outlined in the proposed transaction totals approximately 4% of Painted Pony’s total Montney acreage.
“We are very pleased with this sale as it will reduce our balance sheet leverage and improve our financial flexibility without any impact on current production volumes or proved developed producing reserves,” said Patrick Ward, president and CEO of Painted Pony.