Jumbo Petroleum Corporation

January 03, 2008 15:06 ET

Jumbo Announces Sale of Interest in Gigantic Canadian Petroleum Ltd.

TORONTO, ONTARIO--(Marketwire - Jan. 3, 2008) - Jumbo Petroleum Corporation ("Jumbo") (TSX VENTURE:JBO) announces that has entered into a Letter of Intent, effective November 29, 2007 to sell all the outstanding shares and loan accounts of the Jumbo subsidiary company, Gigantic Canadian Petroleum Ltd. ("Gigantic") to the Company's Debenture Holders, for a total consideration of approximately $8 million. Gigantic holds all the issued and outstanding shares of Jumbo American Petroleum Company, a Nevada Corporation, which holds all of Jumbo's oil and gas interests.

The proceeds from the above sale will be used to pay off Jumbo's outstanding indebtedness to debenture holders of $7,030,000 plus accrued interest.

After this transaction Jumbo will hold a number of diamond exploration claims located in the North West Territories Canada. Jumbo will continue to pursue oil and gas and other energy opportunities.

Shares Outstanding: 55,365,992

The TSX VENTURE EXCHANGE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Jumbo Petroleum Corporation
    Glenn Laing
    CEO, President and Chief Operating Officer
    (416) 368-2114
    (416) 368-3259 (FAX)
    Jumbo Petroleum Corporation
    Fred Christensen
    (416) 368-2114
    (416) 368-3259 (FAX)
    Website: www.jumbodevelopment.com