Barnwell Industries, Inc. Announces Entry into Agreement for the Sale of Water Resources International, Inc. for Gross Proceeds of $2,000,000
14 Dezember 2023 - 12:00PM
Barnwell Industries, Inc. (NYSE American: BRN) (“Barnwell” or the
“Company”) today announced the entry into an agreement for the sale
of Water Resources International, Inc. (“Water Resources”). Water
Resources provides deep drilling and well pumping services needed
in the exploration and development of groundwater resources for
government, commercial and private clients in Hawaii. The sale to a
local construction company is for gross proceeds of $2,000,000,
subject to customary post-closing price adjustments and the
purchaser’s completion of due diligence. Proceeds from the sale,
which is expected to close in early 2024, will be used for general
corporate purposes, with a focus towards reinvestment in the
Company’s oil and gas operations.
Strategic Rationale
- The transaction supports Barnwell’s
focus on simplifying its holding company operations and corporate
structure.
- The sale of Water Resources
streamlines Barnwell as investors will be able to focus on the
significant opportunities the Company has identified in its
profitable domestic and Canadian oil and natural gas business.
- The combination of the proceeds
from the sale of Water Resources and anticipated holding company
general and administrative expense savings further strengthens
Barnwell’s debt-free balance sheet.
Mr. Alexander C. Kinzler, Chief Executive
Officer of Barnwell, commented, “We are pleased to announce the
execution of the contract of sale for our water well contracting
business to a local firm that has a long history of successful
construction and infrastructure activities in Hawaii. This
strategic transaction will enhance both of our organizations, and
we are confident that we leave Water Resources in capable
hands.
“The proceeds from the sale will further our
efforts to drill new wells at our Alberta, Canada, Twining field
and to take positions in domestic energy assets as well.
“Barnwell management has worked closely under
the strategic direction of our newly reconstituted Board of
Directors to streamline our business and focus our resources on the
highest return on invested capital opportunities. The sale of Water
Resources is an important milestone on that path.”
The information contained in this press release
contains “forward-looking statements,” within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. A forward-looking
statement is one which is based on current expectations of future
events or conditions and does not relate to historical or current
facts. These statements include various estimates, forecasts,
projections of Barnwell’s future performance, statements of
Barnwell’s plans and objectives, and other similar statements.
Forward-looking statements include phrases such as “expects,”
“anticipates,” “intends,” “plans,” “believes,” “predicts,”
“estimates,” “assumes,” “projects,” “may,” “will,” “will be,”
“should,” or similar expressions. Although Barnwell believes that
its current expectations are based on reasonable assumptions, it
cannot assure that the expectations contained in such
forward-looking statements will be achieved. Forward-looking
statements involve risks, uncertainties and assumptions which could
cause actual results to differ materially from those contained in
such statements. The risks, uncertainties and other factors that
might cause actual results to differ materially from Barnwell’s
expectations are set forth in the “Forward-Looking Statements,”
“Risk Factors” and other sections of Barnwell’s annual report on
Form 10-K for the last fiscal year and Barnwell’s other filings
with the Securities and Exchange Commission. Investors should not
place undue reliance on the forward-looking statements contained in
this press release, as they speak only as of the date of this press
release, and Barnwell expressly disclaims any obligation or
undertaking to publicly release any updates or revisions to any
forward-looking statements contained herein.
CONTACT: |
Alexander C. Kinzler Chief Executive Officer and President |
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Russell M. Gifford Executive Vice President and Chief Financial
Officer |
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Telephone (808) 531-8400Fax (808) 531-7181Website:
www.brninc.com |
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