well it seems the Canadians are happy with this deal as it will...

well it seems the Canadians are happy with this deal as it will give them cash to explore other interests

Oil producer Point Loma Resources (CVELX) has sold a 20% working interest (WI) in its Alberta assets for $5mln and formed a joint venture, which will boost crude output and help it seek new opportunities.
The deal is with the Canadian subsidiary of Transerv Energy Ltd, a group instrumental in the initial stages of Point Loma's predecessor companies, the firm revealed. Salt Bush Energy will pay Point Loma $1.5 million by April 17 this year and the remaining balance of $3.5mln upon closing [expected before 9 June 2017.] The funds will be used for drilling, facility improvements to reactivate production and certain producing property acquisitions, it said.

Today, it said current production of around 900 boepd was expected to increase with the proceeds from this latest deal through certain identified acquisitions, development drilling and new pool drilling opportunities.
This deal, it told investors, will allow it to accelerate currently identified opportunities and additional capital options to pursue opportunities in its core area of west central Alberta.

Broker Mackie is upbeat on the deal, which it says will accelerate growth without dilution. It repeats a 'buy' and $1 target price.
Point Loma shares were off 4.26% at the time of writing at $0.45 each.
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