09/28/2012 02:12 EDT | Updated 11/28/2012 05:12 EST

Exall Energy sells Jayar oil and gas property in Alberta for $1.8 million

CALGARY - Exall Energy Corp. (TSX:EE) said Friday it has signed a deal to sell its 14.5 per cent stake in the Jayar oil and gas property in Alberta for $1.8 million to a company partly owned by its chief financial officer.

Under the deal, Exall will also receive half of the proceeds in excess of $1.8 million if the acquirer sells the property within the next two years.

The company said chief financial officer Warren Coles owns a 20 per cent interest in the acquiring company and serves as an officer and director.

The Jayar property production includes 72 per cent gas, 16 per cent oil and 12 per cent liquids.

Exall said it will use the money from the sale to pay for its North Marten Mountain development program and evaluate the 2012 3D seismic program.

Shares in the company were up five cents at 89 cents on the Toronto Stock Exchange on Friday afternoon.