Cuda Oil and Gas Inc. (TSXV: CUDA) announced today it has entered into a series of binding agreements to sell all of its oil and gas assets located in Quebec for a total of C$10.59 million, with C$4.29 million being paid in cash, to arm’s-length purchasers.
The sale comprises all land permits, licenses and production rights, and interests in the province, as well as tangible assets including drilling and related equipment. The purchasers will also assume all environmental liabilities associated with the oil and gas assets, estimated at C$3.2 million.
Following the Quebec asset sale, Cuda will shift its focus to becoming a pure play oil and gas producer in the Powder River Basin of Wyoming, which the company describes as the ‘Permian of the Rockies’. The company has over 70 gross infill locations in Wyoming ready to be drilled over the next 3 years.
“Moving forward, Cuda will focus on development of the company’s high-netback conventional light oil assets and secondary recovery miscible gas Flood in Converse County, Wyoming,” commented Glenn Dawson, President and CEO.
“Cuda’s contiguous Powder River Basin lands contain multiple defined opportunities to access and develop low risk proven conventional reservoirs,” Dawson continued. “Additionally, light oil charged unconventional reservoirs within the Cretaceous Stack are highly prospective. Economic horizontal drilling exploitation opportunities are being matured across the basin by major operators.”