HIGHWOOD OIL COMPANY LTD. ANNOUNCES SUCCESSFUL FOURTH QUARTER...

HIGHWOOD OIL COMPANY LTD. ANNOUNCES SUCCESSFUL FOURTH QUARTER 2019
CLEARWATER DRILLING RESULTS AND THE STRATEGIC DIVESTITURE OF NONCORE RED EARTH LEGACY PROPERTY
NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES
Calgary, Alberta, February 18, 2020
Highwood Oil Company Ltd. (“Highwood” or the “Company”) (TSXV:HOCL) is pleased to announce
successful drilling results from its Q4 2019 Clearwater drilling program.
Additionally, the Company is also pleased to announce that it has entered into an agreement with an arm’slength private oil and gas exploration and production company (the “Purchaser”) to divest of the majority
of the Company’s Red Earth asset, comprised of cash of $8.0 million and equity consideration of 10% of
the Purchaser’s outstanding common shares (the “Divestiture”). Under the terms of the Divestiture,
Highwood is entitled to reserve against the Red Earth assets an overriding royalty of 5%. Current
production from the subject Red Earth field is approximately 950 bbl/d of oil.
Current net Company production is approximately 1,000 bbl/d of oil pro forma the Red Earth Divestiture. Is this the same deal but for $8mill Plus shares?