Rolland Energy to sell Technology Division for $1.4 millionadmin
Looking to focus on its oil and gas operations, Rolland Energy Inc. is to sell its Technology Division Assets for $1.4 million cash to a private Canadian corporation (the “Purchaser”). In addition, the Purchaser is to assume and takeover all the existing client, supplier and employment contracts of the Technology Division, including any obligations associated with these contracts.
The agreement was formalized today when Rolland Energy’s board of directors authorized the Corporation to sign a letter of interest with the Purchaser. The sale is subject to satisfactory due diligence being performed by the Purchaser, and will close upon the execution of a purchase agreement. The sale is also subject to the approval of any applicable regulatory authorities.
Rolland Energy will use the proceeds of the sale to pay down $300,000 of debt, to acquire the Scallion property for $500,000 as announced on April 10, 2007, with the balance of the proceeds to go to working capital and to help finance its drilling program. There are no finders fees associated with the sale.
Rolland Energy’s Technology Division represents approximately 20% of its revenues, but has not been profitable to date.
“This sale of the technology division assets will improve the Corporation’s balance sheet and will provide us with additional financial resources with which to grow,” said Martial Rolland, president and Chief Execuitive Officer of Rolland Energy. “Also, it will permit management to concentrate on building value in its core business, which is oil production,” added Martial Rolland.
ABOUT ROLLAND ENERGY INC. – www.rollandenergy.com
Rolland Energy is a light crude oil producer based in south-western Manitoba, building shareholder value through growth by combining low-risk drilling and strategic acquisitions.
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does not accept responsibility for its adequacy or accuracy.”
For further information
Martial Rolland, (514) 333-9292
Source: Rolland Energy Inc.