GREY:SCSZF - Post by User
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newcoinon Mar 01, 2011 10:03am
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Post# 18211265
Non Core Disposition
Non Core Disposition
Second Wave Petroleum Announces Non Core Disposition
(TSX: SCS)
82,922,629 Common Shares
CALGARY, March 1 /CNW/ - Second Wave Petroleum Inc. (TSX: SCS) ("Second Wave" or the "Company") is pleased to announce the disposition of its non-core Provost property in south eastern Alberta for total proceeds of $16.0 million.
Prior to the disposition the Provost property was producing approximately 400 boe/d of net production (62% oil and liquids) out of various Mannville formations. Total consideration received by Second Wave for the disposition was $13.0 million cash paid on close with an additional $3.0 million secured note payable to Second Wave on or prior to August 15, 2012, subject to adjustment in certain circumstances. The Provost property was comprised of approximately 56 net active well bores and 1,550 net undeveloped acres. The disposition was effective February 1, 2011.
The Provost disposition will be accretive to Second Wave on all 2011 metrics. Cash proceeds from the disposition have been applied to outstanding bank debt and will assist in the financing of the Company's 2011 capital program in Judy Creek. Taking into account the results to date of the Company's 2010/2011 capital program and this disposition the Company's lender increased its borrowing capacity under its revolving demand credit facility from $40 million to $44 million. Approximately $24 million is currently drawn on the facility as of March 1, 2011.
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