PRD Energy Inc. reported that it and its subsidiaries have entered into a definitive agreement with its partner at Boerger, terminating the Boerger farm-in agreement and related agreements, and waiving all outstanding claims between the parties. PRD Energy has relinquished all of its direct licences to the relevant state authorities in Germany and is taking steps to discharge its remaining liabilities in Germany. As a result of the above, PRD incurred an impairment expense on its exploration and evaluation assets of $12.9 million and recorded a remaining carrying value of such assets in the amount of $1.82 million.

The remaining carrying value reflects its net payable balance to its partner at Boerger plus its provision for asset retirement obligations each as at June 30, 2015. As a result of terminating the arrangements with its partner at Boerger subsequent to the quarter end, the Company expects to eliminate the carrying value of its exploration and evaluation assets as at September 30, 2015 as well as the related payables and asset retirement obligations.