Barnwell Industries, Inc. Announces Entering into a Non-Binding Letter of Intent for the Sale of its Water Well Drilling Subsidiary

Rhea-AI Summary

Barnwell Industries (NYSE American: BRN) has announced entering into a non-binding letter of intent to sell its water well drilling subsidiary, Water Resources International, Inc. The transaction is valued at $1,050,000 and is expected to close in late March 2025.

The payment structure includes an initial amount at closing, followed by installments concluding by September 15, 2025, within the company's current fiscal year. This strategic move aims to help Barnwell refocus on its core oil and gas exploration business. The company has owned Water Resources International since 1980.

Positive

• Strategic divestment to focus on core oil and gas business
• Sale will generate $1.05M in proceeds
• Structured payment plan ensures cash flow through fiscal year 2025

Negative

• Non-binding nature of the agreement creates uncertainty
• Deferred payment structure carries collection risk
• Loss of revenue diversification from water well drilling business

News Market Reaction

-0.73%

1 alert

-0.73% News Effect

On the day this news was published, BRN declined 0.73%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

HONOLULU, March 05, 2025 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) (“Barnwell” or the “Company”) today announced that it had entered into a non-binding letter of intent for the sale of Water Resources International, Inc., its water well drilling subsidiary. The Company anticipates that the transaction, for an expected aggregate value of $1,050,000, would close in late March 2025. A portion of the consideration would be paid at the closing and the remainder would be paid in installments, with the last installment payable on September 15, 2025, before the end of the Company’s current fiscal year.

Mr. Craig D. Hopkins, CEO of Barnwell, commented “We are pleased to be working on a transaction that would allow us to refocus the Company on our core oil and gas exploration business. The Company has owned WRI since 1980 and the timing is right for us to end our tenure of water well drilling in Hawaii.”

Forward-Looking Statements

The information contained in this press release contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. A forward-looking statement is one which is based on current expectations of future events or conditions and does not relate to historical or current facts. These statements include various estimates, forecasts, projections of Barnwell’s future performance, statements of Barnwell’s plans and objectives, and other similar statements. Forward-looking statements include phrases such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates,” “assumes,” “projects,” “may,” “will,” “will be,” “should,” or similar expressions. Although Barnwell believes that its current expectations are based on reasonable assumptions, it cannot assure that the expectations contained in such forward-looking statements will be achieved. Forward-looking statements involve risks, uncertainties and assumptions which could cause actual results to differ materially from those contained in such statements. The risks, uncertainties and other factors that might cause actual results to differ materially from Barnwell’s expectations are set forth in the “Forward-Looking Statements,” “Risk Factors” and other sections of Barnwell’s annual report on Form 10-K for the last fiscal year and Barnwell’s other filings with the Securities and Exchange Commission. Investors should not place undue reliance on the forward-looking statements contained in this press release, as they speak only as of the date of this press release, and Barnwell expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein.

CONTACT:		Craig D. Hopkins
		Chief Executive Officer and President
		Phone: (403) 531-1560
		Email: info@bocl.ca

FAQ

What is the sale value of Barnwell's (BRN) water well drilling subsidiary?

The sale value of Water Resources International is $1,050,000.

When will BRN complete the sale of Water Resources International?

The transaction is expected to close in late March 2025, with final installment due by September 15, 2025.

Why is Barnwell (BRN) selling its water well drilling subsidiary?

Barnwell is selling the subsidiary to refocus on its core oil and gas exploration business.

How long has BRN owned Water Resources International?

Barnwell has owned Water Resources International since 1980.

How will the payment structure work for BRN's subsidiary sale?

The payment will be made in installments, with an initial payment at closing and remaining installments through September 15, 2025.