Calgary-based Find Energy Ltd. said Tuesday that it will sell all of its properties in southeast Saskatchewan effective Wednesday for C$28.5 million to an undisclosed buyer. The deal is expected to close by June 30.

Production from the properties to be divested currently averages 580 boe/d, or about 16% of Find’s production of 3,700 boe/d. The sale generates a value equal to 21% of Find’s market capitalization, based on the May 31, 2005 closing price of C$4.09 per share. The sale price amounts to approximately C$49,150/daily flowing boe, $21.83/boe of proved producing reserves and C$11.40/boe of proved plus probable reserves. The divestiture also will reduce Find’s estimated average unit operating cost by C $0.70/boe, or 8%.

Find said that it operates only 47% of the southeast Saskatchewan assets and holds an average working interest of 38%. The divestiture will ease the company’s administrative burden, it said, allowing more effort to be directed to its growth in natural gas and light oil production in the Pembina area of Alberta, where it operates all its lands and holds an average working interest of approximately 65%.

The company has also entered into a revolving operating loan facility of C$50 million providing for borrowing at its banker’s prime rate of interest. The borrowing base under the credit facility takes into account the sale of southeast Saskatchewan properties.

©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.