Bayou Bend Signs Definitive Agreement for Sale of Oil and Gas Exploration and Production Assets
April 17, 2009
|VANCOUVER, BRITISH COLUMBIA–(Marketwire - April 17, 2009) - Bayou Bend Petroleum Ltd. (“Bayou Bend” or “the Company”) (TSX VENTURE:BBP) is pleased to announce that it has signed a definitive agreement in respect of the sale of substantially all of its U.S. oil and gas properties to Dynamic Offshore Resources, LLC., a private company based in Houston, Texas. The purchase price for the transaction is US $12.5 million, payable in cash upon closing of the transaction. In addition, a deferred payment of up to US $8.0 million may be made on April 1, 2011, based upon the increase in proved oil and gas reserves attributable to the purchased interests as at December 31, 2010 above a specified threshold, at a rate of US $0.20 per Mcfe.
The transaction is subject to shareholder and regulatory approval.
Bayou Bend plans to hold a special meeting of shareholders to approve the transaction and related matters on May 22, 2009. Upon receipt of all approvals, the transaction is expected to close by the end of May 2009, with an effective date of April 1, 2009.
Keith Hill, President of Bayou Bend, commented, “The board of directors unanimously recommends that shareholders approve the sale. Upon closing of the transaction, the Company will have a very strong cash balance exceeding Cdn $60 million. This represents a clear advantage for Bayou Bend in these currently challenging markets and allows the Company to pursue the wealth of distressed, undervalued resource opportunities available today.”
Canaccord Adams in Houston Texas served as financial advisor to Company in its evaluation of strategic alternatives.
This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company’s capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbor for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
On Behalf of the Board
Keith C. Hill, President
Bayou Bend Petroleum Ltd.
Keith C. Hill
Chairman and President
Bayou Bend Petroleum Ltd.
(604) 689-4250 (FAX)