A private US investor signed a letter of intent to acquire Sheep Springs and Round Mountain oilfields in California from Incremental Oil and Gas Limited (ASX:IOG) for $13 million on August 30, 2013. The signing of purchase and sale agreements are expected to be executed subject to finalization of financing arrangements within the first weeks of September 2013. A settlement for the transaction is expected by the end of September 2013. The proceeds from the disposal will be invested to accelerate the drilling and development of the Florence Field, especially the undeveloped deeper Niobrara reservoir, acquire a long life, low decline conventional oilfield property with development potential, retire existing debt of $4 million and working capital. As reported on October 9, 2013, Incremental Oil and Gas Limited advise that the previously anticipated closing date of September 30, 2013, has been delayed pending finalization of the financing arrangements. The completion is now anticipated by the end of October 2013.

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.