Fairborne Energy Ltd. is going to sell its oil assets in the Greater Sinclair area in the Canadian provinces of Manitoba and Saskatchewan to an undisclosed private oil and gas company for CAD80million in order to reduce debt.
The sale of these assets would reduce Fairborne’s net debt by 31 percent. The company has operations in Alberta, Manitoba and Saskatchewan and had a debt of CAD261.1 million at the end of 2011 and sold some of its natural gas assets to repay debt.
The assets that the company is selling in southwest Manitoba and southeast Saskatchewan include 1.6 million barrels of oil in proved reserves that accounts for approximately 700bpd of oil production.
Fairborne announced that it was exploring strategic options earlier this year, which included a possible sale of the company or its assets.