Barnwell Industries agrees to sell Canadian oil and gas business for C$9 million
BRN•Barnwell Industries agreed to sell its Canadian oil and natural gas business for C$9 million, comprising C$4 million in cash and a 5% gross overriding royalty valued at C$5 million.
1. Sale terms
The buyer, an Alberta corporation, paid a C$1 million escrow deposit that will be credited at closing. An affiliate may purchase the royalty for C$5 million any time after closing, and prior royalty payments will not reduce that price.
2. Approval and obligations
The transaction requires shareholder approval and customary closing conditions. It transfers future site restoration and abandonment obligations, and Barnwell may accept a superior proposal subject to a C$500,000 fee.
