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Chinook Exits Tunisia In $128 Million Sale To MedcoEnergi

|Includes: Chinook Energy Inc New (CNKEF), MEYYY

Chinook Energy has entered into an agreement to sell all of its Tunisian assets for $127.7 million to MedcoEnergi. The consideration includes positive working capital of approximately $13.7 million.

The assets comprise four exploration areas, two development areas and two production areas. Five onshore blocks (Adam, Sud Remada, Bir Ben Tartar, Jenein and Borj El Khadra) are located in the Ghadames Basin, while the remaining three offshore blocks (Cosmos, Hammamet and Yasmin) are located in the Pelagian Basin off Tunisia.

Assets overview

· Q1-2014 production of 1.8 MBOE/d

· 1P reserves of 4.8 MMBOE

· 2P reserves of 8.1 MMBOE (84% light oil)

Upon completion of the acquisition, MedcoEnergi anticipates adding 2P reserves and production of 12.3 MMBOE and 2.8 MBOE/D, respectively.

In May-2013, Chinook Energy reported a net loss of US$16.7 million in Q1-2013.

In Feb-2013, Chinook Energy said its TT-10 horizontal well on the Bir Ben Tartar Concession in Tunisia flowed at 618 bbl/d of oil.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.