By OGJ editors
HOUSTON, Sept. 27 -- The boards of Tulsa, Okla.-based Vintage Petroleum Inc. and Midnight Oil & Gas Ltd. have approved a June 30 agreement whereby Vintage will sell all its interests in Canada to Midnight for $350 million (Can.), including working capital of about $27.5 million.
Closing is scheduled for Nov. 30 subject to a financing contingency that must be satisfied by early October and the approval by Midnight's shareholders.
The sale proceeds will be used to reduce Vintage's net debt-to-book capitalization ratio below 40%, achieving the company's stated financial target, and to enhance its flexibility to fund future production growth, Vintage said.
