(MENAFN- ProactiveInvestors - Australia) Solimar Energy (ASX: SGY) and Challenger Energy (ASX: CEL) are selling their Maricopa producing asset in the San Joaquim Basin, California, to an undisclosed private buyer for US$1.25 million.
The sale is expected to close on 31 January 2013 pending final due diligence.
Solimar, which held a 50% operating interest in the 120 acre property, will use the proceeds from its share of the sale for its key projects, particularly the Kreyenhagen heavy oil project.
California heavy crude oil sells at a premium to West Texas Intermediate oil prices due to strong local demand.
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