CALGARY, ALBERTA--(Marketwire - June 30, 2010) - Daylight Energy Ltd. ("Daylight" or the "Corporation") (TSX:DAY) today announced it has reached an agreement with a private company, Gear Energy Ltd. ("Gear"), to sell certain of Daylight's oil and natural gas assets in Eastern Alberta for aggregate consideration of $125 million, consisting of $100 million in cash and $25 million in equity.Divestiture of this asset package is a continuation of Daylight's strategic repositioning of our portfolio towards growth by monetizing non-core properties and focusing financial and technical resources on core growth assets at Pembina, West Central Alberta and Elmworth in the Deep Basin. Proceeds from this transaction provide Daylight with additional balance sheet flexibility to pursue strategic and capital investment opportunities as they arise. Daylight's previously announced consolidated 2010 capital budget of $300 million remains unchanged.This asset package operating area includes the areas referred to as Bonnyville, Halkirk, Lloydminster, Paradise, Sounding Lake, Vermillion and Wildmere. Production from these assets during the first quarter of 2010 was approximately 2,300 barrels of oil equivalent per day and is predominantly heavy oil. Closing of the transaction is subject to industry standard terms and conditions and regulatory approvals, and is expected to occur by the middle of July, 2010 with a July 1, 2010 effective date. Proceeds from this asset disposition will initially be used to reduce outstanding indebtedness under Daylight's credit facilities.Gear Energy Ltd. is a private Calgary-based oil and gas company led by Don Gray (Executive Chairman) and Rick Braund (Director), previously co-founders of Peyto Energy Trust, and Ingram Gillmore (President & CEO), former VP Engineering at ARC Energy Trust.
Daylight is a growing intermediate oil, liquids rich natural gas and natural gas producing company with a high quality suite of resource play assets in Western Canada. Daylight's highly focused team utilizes technical expertise in exploitation, development and acquisitions to create long-term value for shareholders. The Daylight team has developed a multi-year inventory of repeatable, low risk exploitation resource play projects with substantial potential reserve additions on assets owned and controlled in the premier Deep Basin area of Alberta and Northeast British Columbia. Daylight has approximately 204 million Daylight Shares currently outstanding which trade on the Toronto Stock Exchange ("TSX") under the symbol DAY. Daylight Series B, Series C, and Series D convertible debentures trade on the TSX under the symbols DAY.DB.B, DAY.DB.C and DAY.DB.D, respectively.http://www.daylightenergy.com/
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