Carmen Energy Inc.

May 06, 2013 11:50 ET

Carmen Energy Inc. Announces Completion of Asset Sale

CALGARY, ALBERTA--(Marketwired - May 6, 2013) - Carmen Energy Inc. (TSX VENTURE:CEI) ("Carmen" or the "Corporation") is pleased to announce that it has closed its previously announced asset sale of the Corporation's 60% non-operated working interest in certain oil and gas assets (the "Assets") in the Viking-Kinsella area of Alberta, namely the Corporation's 16-17-049-12 W4 well.

The sale of the Assets was completed with two companies, both of which are considered "related parties" of the Corporation under applicable securities laws. R & D Asset Management Ltd. and Red Mountain Resources Ltd. are owned or controlled by Mr. Tyler Rice, the Corporation's President and by Mr. Randy Harrison, a director of the Corporation, respectively. As a "related party transaction" under applicable securities laws, the Corporation sought and received disinterested shareholder approval on February 15, 2013 at its Annual and Special Meeting of Shareholders.

The independent board members of the Corporation have also approved the sale.

The purchase price for the Assets of $678,600 was adjusted for actual production to the effective date of January 1, 2013. The purchase price was comprised of cash, forgiveness of the notes payable held by each of the purchasers, assumption of the remaining note payable owing by the Corporation to the purchasers and termination of all Gross Overriding Royalties ("GORRs") held by the purchasers as well terminating the balance of the GORRs associated with the note payable on the remaining lands held by the Corporation.

About Carmen Energy Inc.: Carmen is based in Calgary, Alberta and a publicly traded oil and gas exploration and production company. The focus is on exploration and development of Western Canadian Sedimentary Basin based oil and gas properties. The current projects are the Jumpbush properties in south eastern Alberta.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Carmen Energy Inc.
    Tyler Rice
    (403) 537-5590