The divestiture goes a long way towards reducing the $84 million in debt. After the divestiture, they will be carrying around $21 million in debt.
But, as ofir_menkes notes, they still need cash to continue the oil development.
Also, it would appear that they sold the assets at a sizable book loss....so that, while debt will be reduced significantly....so will shareholders' equity.
Yes, but this is a non-cash charge...
So, post divestiture, they should have $22 million in debt, 19,000 mcf/d in production and around 300 bbl/d in oil production.