Courtesy of Benzinga.
Oilsands Quest Inc. (NYSE: BQI) has entered into a non-binding Letter of Intent with a third party to sell its Wallace Creek assets for total consideration of $60 million, which includes $40 million cash at closing and a $20 million contingent payment that is subject to certain future events. The sale of the Wallace Creek property would provide the Company with the financial resources to focus on moving its largest and most advanced asset, Axe Lake, toward commercial development.
“This prospective transaction is good news for Oilsands Quest shareholders. It will provide us much of the capital we need to complete the Axe Lake pilot and prove the commercial recoverability of our highest priority core asset,” said Oilsands Quest Chief Executive Officer Garth Wong. “While Wallace Creek has shown considerable potential, it is not yet as well delineated as Axe Lake and is therefore considerably further away from commercial development.”
