Barnwell to sell Canadian oil & gas business for C$9M base price

Barnwell entered into a definitive share purchase agreement to sell its Canadian oil and natural gas business (held through Barnwell Canada and Octavian Oil) to 2798913 Alberta Ltd. for a base purchase price of C$9 million (C$4 million cash plus a valued 5% royalty worth C$5 million), plus post-closing adjustments. The transaction requires shareholder approval and represents a material divestiture of a core operating segment, with continued upside through a retained 5% gross overriding royalty subject to a call option.

Barnwell is selling its Canadian oil and gas business for about C$9 million in base price, with C$4 million in cash and continued royalty payments from future production. The company will retain a 5% royalty that the buyer can call away later.