Vintage Petroleum to repay revolver debt with some Canadian asset sale proceeds

By Sara Rosenberg

New York, Sept. 23 - Vintage Petroleum Inc. plans to reduce debt under its revolving credit facility with a portion of the proceeds from the sale of interests in Canada to Midnight Oil and Gas Ltd. for C$350 million, according to a company news release.

Remaining proceeds from the sale will be used for general corporate purposes.

The transaction is expected to close on Nov. 30.

"We are pleased with this agreement as it represents a significant step in the execution of our 2004 plan to improve shareholder value," chief executive officer Charles C. Stephenson Jr. said in the release. "In addition, the anticipated proceeds and book gain from this transaction will result in reducing our net debt-to-book capitalization ratio below the 40 percent range, thus achieving our stated financial target and the enhancement of our flexibility to fund future production growth."

Vintage Petroleum is a Tulsa, Okla., energy company.

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