(RTTNews) - Following the announcement made on August 13, diversified energy enterprise Provident Energy Trust (PVX: News , PVE-UN.TO) said Monday it has finalised to sell certain of its non-strategic oil and gas assets in Saskatchewan for C$225 million. The sale is estimated to close on September 30, 2009.

As per the prior announcement, the disposition package includes sale of Southeast and Southwest Saskatchewan and Lloydminster.

The sale reflects transaction metrics of C$61,710 per flowing barrels of oil equivalent per day, or boed, and C$22.06 per barrels of oil equivalent, or boe, of proved plus probable, or P+P, reserves.

Calgary, Alberta-based Provident had said it plans to sell up to 6,320 boed of non-strategic oil and natural gas production assets, primarily located in Saskatchewan, in the previous announcement.

The company intends to use the net proceeds from the disposal to reinvest in high-impact growth initiatives in both upstream and midstream business units, such as Provident's Pekisko and Dixonville oil plays. In the short term, the sales proceeds will be applied to the company's revolving term credit facility, stated Provident.

As previously announced, the company will continue the disposition process for the remaining heavy oil assets in Lloydminster operating area.
Southeast Saskatchewan's second quarter production averaged 2,640 barrels of light crude oil per day and production from Southwest Saskatchewan was 4,346 million cubic feet per day, or mcf/d, of natural gas and 242 barrels of oil for a combined averaged production of 3,646 boed. At June 30, combined P+P reserves for the areas equaled about 10.2 million boe.

"The sale of our Southeast and Southwest Saskatchewan assets monetizes the value created in two of our legacy properties and provides the flexibility needed to refocus our capital and technical resources on high-impact growth initiatives in both businesses," said Tom Buchanan, president and chief executive officer.

In the previous announcement, Buchanan commented, "The decision to sell our assets in Saskatchewan is an important step towards repositioning Provident Upstream for long term sustainability and growth."

Further, the company brought down its 2009 annual production guidance for Provident Upstream to average between 22,000 boed and 23,000 boed from a range of 23,000 boed to 24,000 boed in the previous announcement, reflecting the sale of assets contingent on a September 30, 2009 closing date.

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