Angkor Resources Signs Letter of Intent to Sell Evesham Oil Production
Angkor Cashes In Canadian Oil Chip to Go All-In on Cambodian Energy Bet
On December 15, 2025, Angkor Resources announced it has entered into a binding Letter of Intent (LOI) to sell its 40% participating interest in the Evesham Macklin oil and gas production assets in Saskatchewan, Canada, for a total of $4,800,000.
The payment structure is as follows: - $250,000 non-refundable deposit. - $375,000 payable on the closing date (January 31, 2026). - $3,800,000 from an existing loan applied to the purchase price. - $375,000 final payment on March 1, 2026.
CEO Delayne Weeks stated the sale allows the company to focus on its high-growth potential projects in Cambodia: the Block VIII oil and gas discovery and its gold and copper projects. The Evesham asset was described as capital-intensive. The net proceeds will be used to advance the Cambodian assets and for administrative operations. The release highlights that the transaction is non-dilutive.
The company also provided an operational update, stating the interpretation of its seismic program on Block VIII in Cambodia is expected to be complete by the end of December 2025, having identified 3-5 potential drill targets.
This is a strategically sound and materially positive event for Angkor. The transaction achieves several critical objectives for a junior exploration company:
- Non-Dilutive Funding: The $4.8M sale price provides a significant capital injection without issuing new shares, which is crucial given the company's limited cash reserves ($663k as of April 30, 2025, supplemented by a $770k financing in July).
- Balance Sheet Improvement: The sale effectively cleans up the balance sheet. The Evesham asset was carried on the books at $4.51M (as of April 30, 2025), meaning the sale price represents a small gain. More importantly, applying a $3.8M loan to the purchase price removes a significant liability, substantially de-leveraging the company. This follows a $1.92M shares-for-debt transaction in October, indicating a concerted effort by management to address its debt issues.
- Strategic Refocus: The divestment transforms Angkor into a pure-play Cambodian exploration story. This simplifies the investment thesis and concentrates resources on the highest-impact asset, the Block VIII oil and gas license. CEO commentary reinforces this, framing Evesham as a capital-intensive, lower-growth project compared to the "company-maker" potential in Cambodia.
- Timely Execution: The capital injection comes just as the company is moving from seismic data interpretation to drill target selection on Block VIII. This funding provides the runway to advance both the oil & gas and mineral projects in 2026.
Tracing the company's news flow, the focus has increasingly shifted to Block VIII throughout 2025, from announcing the joint alliance in March, to planning and completing the 350km seismic survey from August to September, and subsequently identifying multiple large-scale targets from October to December. This sale is the logical next step to fund the next phase of this flagship project.
In summary, management has successfully monetized a non-core asset at a fair price, significantly strengthening the company's financial position and sharpening its strategic focus on a high-risk, high-reward exploration play at a pivotal moment.
Angkor Resources is a Canadian junior resource company focused on the exploration of oil, gas, and mineral properties in Cambodia. Following the announced sale of its Canadian oil and gas asset, the company is now a pure-play on Cambodia.
The company's flagship project is the Block VIII onshore oil and gas license, a 3,729 sq. km frontier exploration play. No onshore oil or gas wells have ever been drilled in Cambodia, making this a high-risk, high-reward wildcat opportunity. Angkor's subsidiary, EnerCam, holds the license and in 2025 completed the country's first onshore seismic program in over a decade, identifying multiple large anticlinal structures as potential drill targets. Angkor's 20% interest in this project is carried by its financing partner.
Angkor also holds several mineral exploration licenses, including Andong Meas (gold, copper) and Andong Bor (copper, gold), which are being actively explored.