Embargoed for release at 7.00 am | 1 May 2013 |
Resaca Exploitation, Inc.
("Resaca" or "the Company")
Corporate Update
Resaca (AIM:RSOX), the oil and natural gas production, exploitation, and development company focused on the Permian Basin in the USA, announces an update on certain corporate matters.
Resaca is pleased to announce that it has entered into a letter of intent ("LOI") with an undisclosed party for the sale of its ownership interests in substantially all of its oil and gas properties, related real estate and oilfield equipment used in the production of its properties. The Company will now progress the sale through due diligence and customary documentation and anticipates the sale will conclude late second quarter of 2013.
The LOI contains a breakup clause to the effect that Resaca would be required to pay USD $3.6 million to the buyer in the event that there is a breach of exclusivity. In addition, the non-binding portion of the LOI contemplates a breakup fee if Resaca fails to obtain the required shareholder approval or fails to satisfy the conditions to close as set forth in the to be negotiated purchase and sale agreement ("PSA"). In the event that the breakup clause was triggered, Resaca would likely need to obtain additional funding to satisfy this requirement.
The disposal transaction would be subject to the approval of shareholders in accordance with the AIM Rules for Companies, and would be described in more detail in a circular to shareholders to be published following execution of a PSA in respect of such disposal transaction.
Additionally, the Company anticipates the retention of its interests in the North Iatan property post-closing. The Company will provide a further update on the sales process when more information is available.
For further information please contact:
Resaca Exploitation, Inc. | |
J.P. Bryan, Chairman and Chief Executive Officer | +1 713-753-1300 |
John J. ("Jay") Lendrum, III, Vice Chairman | +1 713-753-1400 |
Dennis Hammond, President and Chief Operating Officer | +1 713-753-1281 |
David Love, Vice President and Treasurer | +1 713-756-1755 |
Buchanan (Investor Relations) | +44 (0)20 7466 5000 |
Tim Thompson Ben Romney www.buchanan.uk.com | |
finnCap Limited (Nomad and Broker) | +44 (0) 20 7220 0500 |
Matt Goode, Corporate Finance Christopher Raggett, Corporate Finance Victoria Bates, Corporate Broking |
About Resaca
Resaca is an independent oil and gas development and production company based in Houston, Texas. Resaca is focused on the acquisition and exploitation of long-life oil and gas properties, utilizing a variety of primary, secondary and tertiary recovery techniques. Resaca's current properties are located in the Permian Basin of West Texas and Southeast New Mexico. Additional information is available atwww.resacaexploitation.com.
In accordance with the AIM Rules, the information in this announcement has been reviewed and approved by Dennis Hammond, President. Mr. Hammond has a Bachelor of Science degree in Petroleum Engineering, is a registered professional engineer in the State of Texas, and has over 30 years relevant experience within the sector.
This information is provided by RNS
distributed by |