Ann: Acquisition of Oil Producing Assets in Canada, page-3

Yawn.
And $30m of abandonment liabilities,,,,ouch! What is it with these guys paying over the top,,,,for everyone''s culls?

Canada NewsWireCALGARY, AB, Nov. 13, 2020CALGARY, AB , Nov. 13, 2020 /CNW/ - Highwood Oil Company Ltd., (" HOCL ", " Highwood " or the " Company ") (TSXV: HOCL) is pleased to announce that it has entered into an agreement with an arm's-length Alberta based, private oil and gas exploration and production company (the " Purchaser ") to divest of the Company's Red Earth field for a total transaction value of $2 million cash, prior to customary closing adjustments (the " Divestiture "). As part of the Divestiture, the purchaser paid a $200,000 non-refundable deposit into trust to be applied against the closing consideration. Current production from the Red Earth field is approximately 1,000 bbl/d of oil.The Divestiture is closed into escrow subject to regulatory approval and license transfers. The Company anticipates closing conditions being satisfied in late January 2021 . The effective date of the Divestiture is the closing date, being the 10 th business day following the date upon which regulatory approval is received. The Divestiture does not include any working interest in the Company's Wabasca Crude Oil Transmission Pipeline.STRATEGIC RATIONALEWith the recent success of the Clearwater Fairway and its drilling program, the Company considered the Red Earth assets to be non-core in nature. The Divestiture allows the Company to remove approximately $30.0 million of undiscounted, uninflated decommissioning obligations from its schedule of liabilities. Highwood is focusing on the higher netback assets with lower operating costs.