Vancouver's Bayou Bend Petroleum Ltd. (TSX-V:BBP) plans to sell its U.S. subsidiaries and assets to a private Texas-based company for US$18 million.
The company, which has focused on oil and gas exploration and development in the Gulf of Mexico, is selling its assets to strengthen its cash position to look for other distressed resource acquisitions created by the economic downturn.
In November, the company engaged Canaccord Adams, the investment banking division of Canaccord Capital Inc. (TSX:CCI), to explore strategic alternatives for the company. Since then it has stopped exploration to preserve its cash. Following completion of the deal, the company will have more than $78.7 million in cash.
Bayou Bend's share price range during the past week: between $0.19 and $0.20; 52-week high: $0.85; 52-week low: $0.095.