American Patriot Oil and Gas (ASX:AOW) has received a letter of intent from private U.S. oil company Edward Mike Davis, LLC. to acquire its entire assets for US$20 million (A$28.6 million).
While the offer demonstrates the quality of its assets at this early stage of development, the company considers the offer to be opportunistic in the current oil price environment.
It intends to focus on performance of its assets and continue discussions with potential bidders in an attempt to secure a higher offer price.
The company will also consider joint ventures with U.S. operator who will pay for drilling costs on its projects.
American Patriot added the current low price environment represents a great opportunity to acquire valuable acreage in the U.S.
The company is currently testing its first horizontal well at the Northern Star Project in Montana.
As at 30th June 2015, American Patriot had $1.5 million in cash at hand.
