Torchlight Energy Resources Inc. (TRCH) said April 8 it will sell certain Hunton assets in Kingfisher and Logan counties, Okla.
The assets are nonoperated and include lease rights and current production, which are being marketed separately. The Plano, Texas-based company said it expects to identify a buyer shortly.
John Brda, Torchlight CEO, said he expects the sale could reduce debt and provide capital toward the company's Texas projects, Orogrande and Marcelina Creek, and with Ring Energy in Kansas.
"We expect to realize value created in our Hunton properties through this sale," Brda said in a statement. "Our continued goal is to create value for our shareholders and a divestiture of these assets would be a step in that direction."
Proceeds from all or part of the assets’ sale will meet obligations to series A promissory noteholders.
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