CALGARY, May 14, 2013 /CNW/ - ArPetrol Ltd. ("ArPetrol" or the "Company") (TSXV: RPT) announces that its wholly-owned U.S. subsidiary has reached an agreement to sell its overriding royalty interests in non-operated properties in the Williston Basin of North Dakota to a private entity for gross proceeds of approximately US$595,000. The purchase price is subject to customary operating and revenue adjustments, based on an effective date of May 15, 2013. Proceeds from the sale will be used for general corporate purposes and to pay U.S. tax arising from the disposition.
Completion of the sale of the royalty interests is subject to customary closing conditions, and closing is expected to occur within the next week.
About ArPetrol Ltd.
ArPetrol is a Calgary-based publicly traded company engaged in oil and natural gas exploration, development and production and third-party natural gas processing in Argentina, where it owns and operates a gas processing facility with capacity of 85 million cubic feet (MMcf) per day. The Company's common shares are listed on the TSXV under the symbol "RPT".
This news release contains certain forward‐looking statements relating, but not limited, to closing the sale of the Corporation's royalty interests in North Dakota, satisfaction of closing conditions and expected timing for closing. Forward‐looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", or similar words suggesting future outcomes. The Company cautions readers and prospective investors in the Company's securities not to place undue reliance on forward‐looking information as, by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company. Forward-looking information is based on management's current expectations and assumptions regarding, the sale of the North Dakota royalty interests, satisfaction of closing conditions and timing for closing. Although the Company believes the expectations and assumptions reflected in such forward‐looking information are reasonable, they may prove to be incorrect.
Forward‐looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to risks associated with uncertainty regarding the ability to satisfy the closing conditions, completing the sale of the royalty interests and the purchaser funding and completing the acquisition.
The forward‐looking information included herein is expressly qualified in its entirety by this cautionary statement. The forward‐looking information included herein is made as of the date hereof and the Company assumes no obligation to update or revise any forward‐looking information to reflect new events or circumstances, except as required by law.
Additional information relating to the Company is also available on SEDAR at www.sedar.com.
ArPetrol's head office address is 700, 815 8 Avenue S.W., Calgary, AB T2P 3P2
Neither the TSXV nor its Regulation Services Provider (as defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: ArPetrol Ltd.
For further information:
Tim Thomas, President and Chief Executive Officer
Ian Habke, Chief Financial Officer
Main Telephone: 403-263-6738