WPX Energy, the spun-off exploration and production arm of Williams, announced this morning that they are selling off their holdings in the Texas Barnett Shale and Oklahamo Arkoma Basin for $306 million, and using the proceeds to grow operations in the Marcellus and Bakken Shale areas, as well as the Piceance Basin.
WPX Energy announced today that it has signed an agreement to divest its holdings in Texas’ Barnett Shale and the Arkoma Basin in Oklahoma for $306 million, subject to closing adjustments.
The properties represent less than 5 percent of the company’s year-end 2011 proved domestic reserves. The Barnett shale properties include current net production of approximately 67 million cubic feet per day.
“We’re receiving good value for assets that are not core to our strategy of growing our primary operations in the Bakken Shale, Piceance Basin and Marcellus Shale,” said Ralph Hill, WPX chief executive officer.
“This strengthens our balance sheet, reflects our strong commitment to running our business in a disciplined manner and provides funds we could use to further expand the oil and natural gas liquids components of our business.”
The Barnett properties include approximately 27,000 net acres, interests in 320 wells and 91 miles of pipeline.
The Arkoma properties include approximately 66,000 net acres, interests in 525 wells and 115 miles of pipeline.
The purchaser is an investor group comprised of KKR Natural Resources and Premier Natural Resources. The parties expect to close the transaction during the second quarter, subject to standard closing conditions.*
*WPX Energy (Apr 2, 2012) – WPX Energy Signs Agreement to Sell Texas, Oklahoma Properties