Barnwell Industries Inc.’s (NYSE: BRN) wholly owned subsidiary Barnwell of Canada Ltd. has closed its sale of its interests in natural gas and oil properties in the Dunvegan and Belloy areas of Alberta, Canada, to an independent third party.
Barnwell of Canada’s share of the sales price is US$14,800,000, at current Canadian dollar exchange rates, and is subject to customary post-closing adjustments, including adjustments to reflect an effective date of sale of April 1. Barnwell received US$14,200,000 in net proceeds, at current Canadian dollar exchange rates. Approximately 50% of the proceeds will be held in escrow for the Canadian tax authorities until tax clearances are obtained and the precise timing of the release of these funds cannot be determined.
As a result of the disposition of these natural gas and oil properties, Barnwell’s credit facility at Royal Bank of Canada will be amended to decrease the amount of the revolving credit facility to $1,000,000 Canadian dollars, from $6,500,000 Canadian dollars. The other material terms of the credit facility remain unchanged. Accordingly, the company placed on deposit with Royal Bank of Canada approximately $6,340,000 Canadian dollars to fully repay its outstanding debt under the facility on Sept. 30, when its outstanding LIBOR comes up for renewal.