Texas Business reports:  HOUSTON and KEMAH, Texas—Delta Seaboard International Inc. and American International Industries Inc. sold Delta's wholly-owned subsidiary, Delta Seaboard Well Service, Inc. to Delta Seaboard LLC, ( Delta LLC) an entity controlled by Delta president Robert Derrick Jr. and Delta vice president Ron Burleigh.

The total consideration paid to Delta and American is $4,075,000, represented by $1.6 million in cash, $1.4 million evidenced by a 5 year, 5% secured and guaranteed promissory note payable to Delta and the delivery to American of 31,925,832 shares of Delta common stock valued at $1.075 million which shares represent 45% of Delta's outstanding shares at December 31, 2011.

Notwithstanding its five-year term, the note will be paid prior to maturity, upon the sale of 3.2 acres of land on which DSWS' place of business is located.

The divestiture of DSWS, which was approved by board and majority stockholders of Delta, will increase American's ownership interest in Delta from approximately 45% to 91.4%.

At December 31, 2011, DSWS had a net book value of $2.6 million; the sale of DSWS resulted in a gain to Delta of approximately $1.4 million and to American of approximately $1.2 million. The exact amount of the gain will be subject to adjustment based upon the actual book value at the date of closing, which took place on April 3, 2012.

Delta will receive additional consideration equal to the amount that Delta LLC receives from the planned sale of the 3.2 acre property in excess of $3 million. This property is currently being offered for sale for $4.25 million, which both Delta and American believe is the fair market value of the property.

DSWS has been in the oil and gas service business for more than thirty years.

“The decision by the board of directors of Delta and American to sell DSWS was to substantially increase its cash position, to repurchase its shares on the open market since the company's liquidity is more than its market cap and to be able to explore several investment opportunities that exist utilizing the proceeds from this transaction, which we believe will be in the best interests of the shareholders of Delta and American, said DSWS chief executive Daniel Dror.

American International Industries, Inc. is a diversified holding company of subsidiaries with interests in the automotive and consumer retail industry, real estate, oil well site supply and services, intellectual property, and the acquisition of petroleum resources in the United States, coupled with international exploration.