A private US investor cancelled the acquisition of Sheep Springs and Round Mountain oilfields in California from Incremental Oil and Gas Limited.
As of November 27, 2013, a private US investor signed an agreement to acquire Sheep Springs and Round Mountain oilfields in California from Incremental Oil and Gas Limited (ASX:IOG) for $11 million. Of the $11 million in proceeds, $8.5 million will be paid at settlement. Incremental has agreed to provide vendor finance for the remaining $2.5million, secured against a primary lien over an oilfield owned by US investor and a further subordinate lien over the California oilfields. The adjustment from the original price of $13 million takes into account revenue of approximately $1.4 million which has accrued from the two oilfields between the original sale agreement in August and settlement in December 2013. The proceeds from the sale will be applied to the resumption of drilling activities in Incremental Oil's Colorado oilfield and also to secure the investor of further long life producing assets with considerable upside.
A private US investor cancelled the acquisition of Sheep Springs and Round Mountain oilfields in California from Incremental Oil and Gas Limited (ASX:IOG) on January 8, 2014.