Westminster to sell Canadian assets to AEC

Westminster Resources and AEC Oil & Gas jointly announced a definitive agreement whereby Westminster Resources will sell all of its Canadian oil and gas assets to AEC Oil & Gas for $ 62.7 mm in cash. After repayment of debt, Westminster will have approximately $ 22 mm from the sale proceeds to continue and expand upon its joint venture with the Berkley Petroleum partnership in the San Joaquin Basin in California.
Two wells are currently drilling - the Berkley East Lost Hills No. 2 step-out well is drilling at 16,600 feet and is expected to encounter the top of the target Temblor formation close to the end of September. The Berkley East Lost Hills No. 3 well is currently drilling at a depth of 13,960 feet, and is testing a large, separate structural prospect from the Berkley No. 1/No. 2 structure. The Berkley No. 1 tie-in remains on schedule for a December production start-up.

The company is currently reviewing several drill ready exploration projects in Canada that will allow for an aggressive exploration program prior to year-end to fulfil flow-through obligations of approximately $ 8.5 mm. "This acquisition further consolidates AEC's resources in north-east British Columbia, building on the company's dominant position in the Sierra Ekwan region," said Randy Eresman, President of AEC Oil & Gas.
Completion of the sale is subject to applicable regulatory approvals and to receipt of Westminster shareholder approval. Westminster has scheduled a shareholder meeting for October 16, 2000, and closing of the sale is planned for October 19. In a separate announcement, the President and Director of Westminster Resources, Lee Baker, has resigned.