FieldPoint Petroleum Corporation has completed the sale it’s 25.23% working interest in a waterflood project consisting of 23 producing and 9 injection wells in the Apache field in Caddo County Oklahoma to a private Exploration & Production company.
The total sales price for the asset was $900,000. Although the sale included some production, the fixed operating costs were extremely high due to the nature of the project. The divestiture wont have a significant effect on cashflow, but will result in a net gain of approximately $729,000 and increases net equity to help us regain compliance with the NYSE American.
Phillip Roberson, President and CFO, said, “Approximately $600,000 of the funds from this transaction were used to further reduce outstanding bank debt. The remaining balance was used to pay outstanding lease expenses related to the project. Today’s transaction is another step toward regaining compliance with the terms of our bank debt, and with the NYSE American listing requirements. We plan to continue to exit low margin non-core assets and concentrate on acquiring operated properties where we have a better abilitly to control operating costs.”
