OilVoice - Border Petroleum Announces Sale of Non-core Property

Border Petroleum Announces Sale of Non-core Property

Friday, January 08, 2010

Non-Core Asset Sale
Border has sold a non-core, low gravity oil property to an arm's length private company for $200,000 in cash. The disposition consists of shut-in, high operating cost production in the Lloydminster area in east central Alberta. Based upon Border's April 30, 2009 reserves estimate, the proved and the proved plus probable reserves assigned to the Lloydminster assets were 89,295 BOE and 121,320 BOE, respectively. Border will update its reserves as at its April 30, 2010 year-end.

The sale is part of the Border's strategy to monetize non-core, high operating cost assets and focus its resources on existing core properties and targeted exploration and resource plays. In this regard, proceeds from the sale will be applied to working capital and work-over and equipping costs on other Company properties.

Production Update
The results of Border's recent work-over program at its Cherhill and Norris properties in west central Alberta has resulted in an increase to the Company's daily production. Current production, net of the Lloydminster disposition, is approximately 36 barrels of oil equivalent per day ("boepd"), up from the average of 25 boepd reported for the 6 month period ending October 31, 2009.

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