Sale of Italian business and West Don Update


 

TIDMSE. 
 
RNS Number : 0836C 
Stratic Energy Corporation 
05 November 2009 
 

 
 
 
 
NEWS RELEASE 
 
 
Sale of Italian business and West Don operations update 
 
 
CALGARY and LONDON, November 5, 2009 - Stratic Energy Corporation (TSX Venture: 
'SE', AIM 'SE.') ("Stratic" or the "Company") announces the sale of its Italian 
business to Enel Trade SpA ("Enel"), a subsidiary of one of Italy's largest 
companies, and provides an update on the performance of its North Sea West Don 
field. 
 
 
The sale to Enel involves Stratic's entire portfolio of assets in Italy, 
including its interest in the Longanesi gas field and other exploration acreage 
in the country, for a total cash consideration of EUR34.3 million ($50.9 million) 
and the assumption of existing obligations relating to the assets. Stratic is 
entitled to receive a further payment of EUR6.6 million ($9.8 million) provided 
the commencement of first production takes place before the end of 2011, 
reducing pro-rata by month, with no payment due if production commences after 
the end of 2012. The transaction is subject to usual industry conditions, 
including regulatory approval, and is expected to complete in the first quarter 
of 2010. 
 
 
At West Don, Stratic now considers that 2009 gross production from the field 
will be approximately 1.75 million barrels of oil (mmbbls) (Stratic share: 0.30 
mmbbls), compared with our previous estimate of 2.1 mmbbls (Stratic share: 0.36 
mmbbls). The reduction reflects continuing gas lift and water injection 
performance below expectation. Work is well underway on the export pipeline 
tie-back to the Thistle facilities, with completion on-track for February 2010. 
Stratic plans to provide a further update on West Don production and reserves in 
the Company's third quarter interim results, to be released in late November 
2009. 
 
 
Kevin Watts, Stratic's President and Chief Executive Officer, commented: "We are 
delighted to announce the successful sale of our Italian business. This is the 
next step in our disposal programme and business restructuring which we 
commenced at the start of the year, and which saw the completion of the sale of 
our interests in the Breagh licences in August. When the Italian business sale 
completes, our disposals will have generated gross cash receipts totalling 
over $110 million. The Italian business sale proceeds will enable us to reduce 
net debt further, strengthen the balance sheet and provide resources for future 
investment." 
 
 
Stratic was advised by Lazard & Co., Limited on the sale of its Italian 
business. 
 
 
For further information contact: 
 
 
John van der Welle, Chief Financial Officer    +44 20 7766 7900 
Mark Bilsland, Chief Operating Officer          +44 20 7766 7900 
 
 
Patrick d'Ancona, M:Communications            +44 20 7153 1547 
 
 
Canadian Investor Relations 
Roger Fullerton                                 +1 952 929 7243 
Email: roger.fullerton@straticenergy.com 
 
 
Website: www.straticenergy.com 
 
 
 
 
  About Stratic: Stratic Energy Corporation is a Canadian-incorporated 
international oil and gas business focused on adding value principally through 
the appraisal, development and production of existing discoveries, supplemented 
by a low to moderate risk exploration programme. Stratic's principal interests 
are in the UK and Dutch sectors of the North Sea, Italy, Turkey and Syria. Its 
shares are listed on the TSX Venture Exchange in Toronto and on AIM, London and 
its principal operating office is in London, UK. 
 
 
Forward-looking statements 
 
 
This news release contains certain forward looking statements, which involve 
assumptions with respect to future plans, production levels and results, and 
capital expenditures. The reader is cautioned that all such forward looking 
statements involve substantial risks and uncertainties and the assumptions used 
in their preparation may not prove to be correct. Stratic's actual results could 
differ materially from those expressed in, or implied by, these forward looking 
statements and accordingly, the forward looking statements are qualified by 
reference to these cautionary statements. The forward looking statements 
contained herein are made as at the date of this news release. Stratic 
undertakes no obligation to update or publicly revise forward looking statements 
or information unless so required by applicable securities laws. 
 
 
TSX-V and AIM notifications 
 
 
The TSX Venture Exchange has not reviewed and does not accept responsibility for 
the adequacy or accuracy of the contents of this release. 
 
 
Stratic's Chief Operating Officer, Dr Mark Bilsland BSc (geology), PhD 
(petroleum petrophysics), and member of the SPE, is the qualified person who has 
reviewed and approved the technical information in this announcement for the 
purposes of the AIM Rules for Companies (incorporating the Guidance Note for 
Mining, Oil and Gas Companies). 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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