Spyglass Resources Corp. has entered into a purchase and sale agreement to sell its Red Earth assets for $12.3 million (prior to normal closing adjustments). The transaction closed November 28, 2014 and the proceeds will be used to reduce bank indebtedness.
Red Earth production during the third quarter of 2014 was approximately 210 boe/d (100% liquids). Based on the McDaniel & Associates Consultants Ltd. December 31, 2013 reserve report, the property was assigned proved developed producing reserves of 0.4 MMboe, total proved reserves of 0.8 MMboe and proved plus probable reserves of 1.4 MMboe. Approximately 27,500 net acres of undeveloped land and a copy of the Company's proprietary seismic in the area are included in the transaction.