Gelonghui, April 2, 丨 Jixing New Energy (03395.HK) announced that on April 1, 2024, the company and the buyer entered into a sales agreement to sell assets at a cost of 1.9 million Canadian dollars.
The assets the company intends to sell are undeveloped land and wells in the company's Basing area. Details of the assets are set out below: In 2017, the company obtained PNG rights to five plots of land in Alberta, Canada to develop the company's basing cash generating units of oil and gas for a period of five years. In 2022, the company extended PNG rights by drilling an exploration well. All relevant land purchase prices and development costs were classified as exploration and evaluation assets in the company's financial statements. The sale agreement covers all PNG rights and on-site non-production wells. Future disposal costs will be transferred to the buyer.
Supervising the current difficult business environment, after careful consideration, the board of directors decided to sell these non-core and unproductive assets to generate cash as working capital. The directors believe that the sale will allow for more efficient allocation and utilization of the company's resources thereafter.