May 11, 2010 (FinancialWire) — Advantage Oil & Gas Ltd. (TSX: AAV) (NYSE: AAV) said that it has signed purchase and sale agreements relating to the disposition of non-core natural gas weighted assets located in South Eastern Alberta for gross cash proceeds of $67 million.

The company said that the disposition is comprised of two separate transactions which include combined production of around 1,700 boe/d (and proved plus probable reserves of 6.4 million boe as of December 31, 2009 as estimated by Sproule Associates Ltd. The transactions are scheduled to close on or about May 31, 2010 with effective dates of March 1, 2010 and April 1, 2010.

Advantage said it would initially use the net proceeds from these dispositions to repay bank indebtedness under Advantage's credit facility, which may be subsequently redrawn to fund future capital expenditures and for general corporate purposes.

The two disposition transactions are subject to customary regulatory approvals and other conditions.

Canada-based Advantage Oil and Gas is an intermediate oil and natural gas corporation with properties located in Western Canada.

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