Resaca Exploitation Inc Corporate Update (7039D)
May 01 2013 - 1:00AM
UK Regulatory
TIDMRSOX
RNS Number : 7039D
Resaca Exploitation Inc
01 May 2013
Embargoed for release at 1 May 2013
7.00 am
Resaca Exploitation, Inc.
("Resaca" or "the Company")
Corporate Update
Resaca (AIM:RSOX), the oil and natural gas production,
exploitation, and development company focused on the Permian Basin
in the USA, announces an update on certain corporate matters.
Resaca is pleased to announce that it has entered into a letter
of intent ("LOI") with an undisclosed party for the sale of its
ownership interests in substantially all of its oil and gas
properties, related real estate and oilfield equipment used in the
production of its properties. The Company will now progress the
sale through due diligence and customary documentation and
anticipates the sale will conclude late second quarter of 2013.
The LOI contains a breakup clause to the effect that Resaca
would be required to pay USD $3.6 million to the buyer in the event
that there is a breach of exclusivity. In addition, the non-binding
portion of the LOI contemplates a breakup fee if Resaca fails to
obtain the required shareholder approval or fails to satisfy the
conditions to close as set forth in the to be negotiated purchase
and sale agreement ("PSA"). In the event that the breakup clause
was triggered, Resaca would likely need to obtain additional
funding to satisfy this requirement.
The disposal transaction would be subject to the approval of
shareholders in accordance with the AIM Rules for Companies, and
would be described in more detail in a circular to shareholders to
be published following execution of a PSA in respect of such
disposal transaction.
Additionally, the Company anticipates the retention of its
interests in the North Iatan property post-closing. The Company
will provide a further update on the sales process when more
information is available.
For further information please contact:
Resaca Exploitation, Inc.
J.P. Bryan, Chairman and Chief
Executive Officer +1 713-753-1300
John J. ("Jay") Lendrum, III,
Vice Chairman +1 713-753-1400
Dennis Hammond, President and
Chief Operating Officer +1 713-753-1281
David Love, Vice President
and Treasurer +1 713-756-1755
Buchanan (Investor Relations) +44 (0)20 7466 5000
Tim Thompson
Ben Romney
www.buchanan.uk.com
finnCap Limited (Nomad and + 44 (0) 20 7220
Broker) 0500
Matt Goode, Corporate Finance
Christopher Raggett, Corporate
Finance
Victoria Bates, Corporate Broking
About Resaca
Resaca is an independent oil and gas development and production
company based in Houston, Texas. Resaca is focused on the
acquisition and exploitation of long-life oil and gas properties,
utilizing a variety of primary, secondary and tertiary recovery
techniques. Resaca's current properties are located in the Permian
Basin of West Texas and Southeast New Mexico. Additional
information is available at www.resacaexploitation.com.
In accordance with the AIM Rules, the information in this
announcement has been reviewed and approved by Dennis Hammond,
President. Mr. Hammond has a Bachelor of Science degree in
Petroleum Engineering, is a registered professional engineer in the
State of Texas, and has over 30 years relevant experience within
the sector.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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