Shoreline Energy Corp. has closed the sale of its Wattenburg royalty interests for total proceeds of US$7.7 million (approximately $8.7 million Canadian Dollars based on current exchange rates). Shoreline intends to use the proceeds of this sale, combined with cash on hand, to repay the Corporation's three secured creditors including retirement of its royalty obligation, according to the terms of the previously disclosed forbearance agreements and inter-creditor agreement.

This asset sale will reduce Shoreline's overall current production from 892 barrels or equivalent per day ("Boed") to 792 Boed based on field estimates, and improves monthly cash flow by approximately $40,000 as reduced debt service costs of $150,000 more than offsets reduced revenue of $110,000.

Tags: Shoreline Energy Corporation