JED Oil Inc to announce Assest sale
The agreement signed with note holders, JED oil Inc, reported it to the press. the company has signed an Engagement Agreement with CB Securities Inc. (“CB Securities”) of Calgary to market JED’s northern Alberta oil and gas assets in the Steen River area of northern Alberta. The properties offered for sale produce approximately 1,400 BOE/day weighted approximately 60% to light oil. JED holds high working interests in these operated properties that have mostly year round access and owned infrastructure. AJM Petroleum Consultants has estimated that the properties offered have 3.87 MMBOE of proved and probable remaining reserves, representing a 7.6 year reserve life index.
President of CB Securities, Darryl Derouin, stated, “Marketing materials will be available in early August, with bids expected in mid-September. Potential purchasers can contact me in my Calgary office at 403-781-7041.” Net proceeds from the asset sales will be used to redeem JED’s $40.240 million principal amount of 10% Senior Subordinated Convertible Notes (“Notes”) plus interest accruing from January 1, 2008, and to pay outstanding trade creditors. The balance of proceeds will be used for the Company’s 2008/9 drilling program and general working capital. The sales are expected to close by October 31, 2008 unless shareholder approval is required. In that event, the sales are expected to close by November 21, 2008. “We expect to be free of debt and ready to proceed building the Company when we complete this process,” stated Tom Jacobsen, JED’s CEO.
Established in September 2003, JED Oil Inc. is an oil and natural gas company that commenced operations in the second quarter of 2004 and has begun to develop and operate oil and natural gas properties principally in western Canada and the United States.
