Lucero Energy Corp. closed on June 15 the divestiture of non-operated North Dakota Bakken/Three Forks play assets for cash consideration of US$104.6 million (CAD$140.2 million).
Lucero, based in Calgary, Canada and formerly known as PetroShale Inc., did not disclose the buyer. The company described the transaction as being with “an arm’s length purchaser,” according to a press release.
The divested assets have 153 drilling locations. Production is expected to average 2,300 boe/d in 2023 (80% light oil and NGL). Evaluated by Lucero’s independent reserves evaluator Netherland, Sewell and Associates Inc., the assets include total proved reserves of 15 MMboe and total proved and probable reserves of 20.2 MMboe at Dec. 31, 2022.
At closing, Lucero had no debt and more than CAD$40MM of working capital. The company’s senior secured credit facility was revised to US$160MM.
RBC Capital Markets acted as financial adviser to Lucero.
Lucero also announced its normal course issuer bid with TSX Venture Exchange’s acceptance of the company’s notice of intention to do so. Beginning on June 19, the company plans to buy back, from time to time, up to a maximum of 33.1 million, or 5% of its outstanding shares.
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