CanAsia Sells Sawn Lake Heavy Oil Project for Up to C$55 Million

CanAsia Energy Corp., a Canadian publicly listed junior oil and gas company, has announced that it has entered into a definitive share purchase agreement to sell its Sawn Lake Heavy Oil Project. The transaction is an all-cash deal with an Alberta corporation for C$30 million, plus up to C$15 million in contingent consideration based on crude oil production.

The completion of the sale is subject to shareholder and regulatory approvals, including the approval of the TSX Venture Exchange (TSXV). CanAsia's CEO, Jeff Chisholm, stated that the company is pleased to monetize its Sawn Lake asset at favorable financial metrics. He added that the company will return C$17 million of the proceeds to shareholders as a return of capital.

The sale marks a significant shift in focus for CanAsia, which has been evaluating and advancing early-stage oil and gas assets. The company's directors and officers have agreed to vote their shares in favor of the transaction at an upcoming shareholder meeting.