Connacher Oil and Gas Ltd. has agreed to sell its Battrum properties in southwest Saskatchewan to Hyak Energy ULC for $57.5-million.
The Calgary-based company said Wednesday that proceeds from the transaction will go towards paying off its debts. A closing date is expected around Feb. 15.
Hyak is an affiliate of privately-owned Accelerated Oil Technologies LLC. Under the agreement it will receive the properties which have production of 700 barrels of crude oil per day.
Connacher still has a heavy oil refinery in Great Falls, Mont., with 9,500 barrels per day of production and a 19-per-cent interest in Petrolifera Petroleum Ltd. .