Oct 9 (Reuters) - Lone Pine Resources Inc :
* Announces non-core asset dispositions
* Signed agreements with private oil&gas cos to dispose of certain non-core
assets in kaybob area
* Says gross cash proceeds of $19.0 million
* Further company coverage
Lone Pine Resources Inc. ("Lone Pine" or the "Company") (NYSE:LPR)(TSX:LPR) announces that it has entered into two separate definitive agreements with private oil and gas companies to dispose of certain non-core assets in the Kaybob area of the Deep Basin for total gross cash proceeds of $19.0 million, subject to normal course closing adjustments. On a combined basis, these assets had current net sales volumes of approximately 3.4 MMcfe/d (82% natural gas) based on field estimates and total net estimated proved reserves of 11.1 Bcfe at December 31, 2011, determined in accordance with U.S. Securities and Exchange Commission guidelines.
The two transactions each have an effective date of August 1, 2012. Lone Pine closed one of the transactions on September 25, 2012 and expects to close the other transaction in mid-October 2012. The net proceeds of the transactions will be used by Lone Pine to reduce indebtedness outstanding under its credit facility and there will be no change to the current borrowing base as a result of these transactions.
Lone Pine continues to execute on its previously announced asset portfolio review and other non-core disposition processes. The Company will provide updates on those processes when the board of directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate.
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