From the Marcellus Drilling News:
PDC Energy, formerly known as Petroleum Development Corp., announced Tuesday they are selling off “non-core” assets in the Piceance Basin (northwestern Colorado) and assets they own in northeastern Colorado for $200 million so they can invest the money in wet gas drilling in the Ohio Utica and Niobrara Shale plays.
PDC’s announcement from Tuesday:
PDC Energy, Inc. (“PDC” or the “Company”) today announced the Company has signed a definitive agreement to sell its Piceance, NECO, and other non-core Colorado holdings to Denver-based Caerus Oil and Gas LLC for approximately $200 million in cash, subject to purchase price adjustments. The transaction includes the buyer’s assumption of all PDC’s firm transportation obligations related to the sale assets as well as certain natural gas hedging positions for the years 2013 through 2015.
The effective date of the transaction is January 1, 2013 and it is expected to close in the second quarter of 2013, subject to customary closing conditions. The assets to be sold are approximately 99% natural gas and include an estimated 85 billion cubic feet equivalent (“Bcfe”) of net proved developed producing reserves as of December 31, 2012. The assets currently produce approximately 42 million cubic feet equivalent per day net and the sale is expected to reduce PDC’s net production volume in 2013 by approximately 10 Bcfe. Petrie Partners LLC advised PDC on the sale.
James Trimble, President and Chief Executive Officer, stated, “We are extremely pleased that this planned divestiture positions us to accelerate the development of our high-return, liquid-rich Wattenberg [Niobrara] and Utica Shale horizontal drilling inventory. The sale represents a major step in our transition towards a high quality, liquid-rich asset base by increasing our year-end 2012 pro forma proved reserve mix to 52% oil/liquids. The transaction also strengthens our balance sheet and debt metrics, increases per-unit margins, and improves our long-term growth profile. Proceeds from this sale and internally generated cash flow are expected to more than fully fund our previously announced 2013 capital program. In order to more accurately reflect the increased liquids mix of our asset base, the Company will begin to report our 2013 production and reserves in terms of barrels equivalent, rather than MCF equivalent.”*
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.