Resaca Exploitation Inc Corporate Update (4547Z)

TIDMRSOX

RNS Number : 4547Z

Resaca Exploitation Inc

07 March 2013

 
 Embargoed for release at   7 MARCH 2013 
  7.00 am 
 

Resaca Exploitation, Inc.

("Resaca" or "the Company")

Corporate Update

Resaca (AIM:RSOX), the oil and natural gas production, exploitation, and development company focused on the Permian Basin in the USA, announces an update on certain corporate matters.

Further to the announcement on 19 December 2012, Resaca is pleased to announce that it has entered into a non-binding letter of intent with ERG Resources, L.L.C. located in Houston, Texas ("ERG") for the sale of its ownership interests in the Cooper Jal Unit, Langlie Jal Unit, Jordan San Andres Unit, Edwards Grayburg Unit; the Kermit, McElroy and Kayser properties; and the Odessa office complex. The Company will now progress the sale through due diligence and customary documentation and anticipates the sale will conclude during the second quarter of 2013. Additionally, the Company anticipates the retention of certain producing properties and interests post-closing.

The disposal transaction would be subject to the approval of shareholders in accordance with the AIM Rules for Companies, and would be described in more detail in a circular to shareholders to be published following execution of a definitive binding agreement in respect of such disposal transaction.

The Company will provide a further update on the sales process when more information is available.

The Company also announces that R. Kelly Plato, Non-Executive Director of Resaca and Chief Financial Officer of ERG, has resigned from the Board with immediate effect as a result of his interest in both parties subject to the potential transaction.

For further information please contact:

 
 Resaca Exploitation, Inc. 
 J.P. Bryan, Chairman and Chief Executive 
  Officer                                             [phone] 
 John J. ("Jay") Lendrum, III, Vice Chairman          [phone] 
 Dennis Hammond, President and Chief 
  Operating Officer                                   [phone] 
 David Love, Vice President and Treasurer             [phone] 
 
 Buchanan (Investor Relations)                    [phone] 
 Tim Thompson 
  Ben Romney 
 
 finnCap Limited (Nomad and Broker)             + 44 (0) 20 7220 0500 
 Matt Goode, Corporate Finance 
  Christopher Raggett, Corporate Finance 
  Victoria Bates, Corporate Broking 
 

About Resaca

Resaca is an independent oil and gas development and production company based in Houston, Texas. Resaca is focused on the acquisition and exploitation of long-life oil and gas properties, utilizing a variety of primary, secondary and tertiary recovery techniques. Resaca's current properties are located in the Permian Basin of West Texas and Southeast New Mexico. Additional information is available at www.resacaexploitation.com.

In accordance with the AIM Rules, the information in this announcement has been reviewed and approved by Dennis Hammond, President. Mr. Hammond has a Bachelor of Science degree in Petroleum Engineering, is a registered professional engineer in the State of Texas, and has over 30 years relevant experience within the sector.

This information is provided by RNS

The company news service from the London Stock Exchange

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