The Calgary-based company's stock, which had closed last week at 13 cents, was up about 42 per cent after the announcement Monday.
Anderson said proceeds from the transaction will be used to repay the company's bank debt initially, although it will review other strategic alternatives.
Those alternatives could include development of other properties in the Cardium formation, a drilling joint venture, a merger or the outright sale of Andreson, the company said.
"The continued development of the company's oil and gas assets is dependent on the ability of the company to secure sufficient funds through operations, bank facilities and other sources from the strategic alternatives process," Anderson said.
The company's Garrington and Ferrier properties were producing the equivalent of 1,000 barrels of oil per day in August, including natural gas and natural gas liquids.
The transaction, which will have an effective date of Aug. 1, is expected to close by the end of October.