Arsenal Energy Inc. has jettisoned all its U.S. oil and natural gas properties, including Bakken Shale assets, to pay down debt.
The Calgary, Alberta-based company said May 27 it sold its U.S. assets to an undisclosed company for US$34 million.
Arsenal operates three prospect areas with Bakken/Three Forks production in the Williston Basin in Montrail, Williams and Burke counties, N.D.
Proceeds have been used to reduce its outstanding bank credit facility. Arsenal estimates its current bank debt following the sale at about C$11.7 million.
In addition, Arsenal said it has entered a letter of intent to sell 250 barrels of oil equivalent per day of Canadian production for C$8.7 million.
The transaction is expected to close by June 30. Upon closing, the company will have repaid about C$70 million of bank debt over an 18-month period.
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