CALGARY (CP) -- Middlefield Bancorp Ltd. has struck a deal to sell oil and gas assets in Alberta for C$24 million.
The Toronto-based merchant bank said Thursday its Calgary subsidiary, 2M Energy Corp., had struck a deal to sell its oil and gas interests at Wild River, Alta., along with some smaller related properties.
The total selling price of C$24 million after adjustments will generate C$19.1 million in cash for the company.
The sale is slated to close Nov. 17, with the pre-tax gain on the deal of more than C$4 million.
Following closing, Middlefield will have about C$35 million in cash and is actively looking for ways to use the money, the company said.
The Wild River assets consist of non-operated working interests in 21 gas wells, a gas processing plant, pipelines and 14.25 sections of land in the Wild River area. The wells are projected to have an initial year production rate of approximately 415 barrels of oil equivalent output a day to 2M.
Other minor assets included in the sale are interests in smaller properties at Sylvan Lake, Paddle River and Edson, Alta.
2M Energy Corp. is an oil and gas explorer that works through joint ventures with operating companies. The company's assets remaining after the sale include a 33 per cent interest in a heavy oil property at Panny, Alta., which is operated by Devon Energy as well as a 17 per cent stake in a smaller property in the Countess area of southern Alberta, operated by EnCana Corp.
(c) The Canadian Press 2005