Angkor Resources Signs Definitive Agreement to Sell Evesham Oil Production
Angkor sheds Canadian production to fund high-stakes Cambodian exploration gamble
On January 5, 2026, Angkor Resources Corp. (ANK) announced it signed a definitive agreement to sell its 40% participating interest in the Evesham Macklin oil and gas lands in Saskatchewan. The total consideration is $4,800,000 CAD. This consists of $1,000,000 in cash payments (a $250,000 non-refundable deposit already paid, $375,000 at closing on January 30, 2026, and $375,000 on March 1, 2026) and the assumption of $3,800,000 in existing loan debt by the purchaser. The deal is subject to shareholder approval at the AGM on January 29, 2026.
This transaction is a strategic pivot that high-grades the balance sheet at the expense of cash flow. - Balance Sheet De-risking: The primary impact is the removal of $3.8 million in debt from the company's books. Given the Oct 31, 2025, financial statement showed total liabilities of $5.86 million against a cash position of only $215,220, this debt assumption is critical for solvency. - Working Capital: The $1 million cash infusion (gross) provides necessary liquidity for the upcoming 2026 Cambodian drilling campaign. - Asset Valuation Check: The company acquired this asset for ~$4.4 million in late 2023 and estimated its NPV10 at $8.3 million in May 2025. Selling the total interest for a value of $4.8 million suggests either a significant discount was accepted for speed/liquidity or previous reserve valuations were overly optimistic. - Loss of Production: ANK is now a pure-play explorer. The "Share of Profit" from Evesham was actually a loss of $167,000 in the most recent quarter, so shedding the asset also eliminates an operational cash drain.
Angkor Resources is a multi-commodity explorer. Following the Evesham sale, its flagship focus is Block VIII, a 4,277 sq km onshore oil and gas concession in Cambodia. Through its subsidiary EnerCam, the company has completed 2D seismic identifying multiple anticlinal structures (South Bokor, Central Bokor, Mussel Basin) with 4-way closures. The company also holds 100% interests in mineral licenses (Andong Meas, Andong Bor) targeting copper-gold porphyry and epithermal gold systems.