TULSA, Okla.--(BUSINESS WIRE)--WPX Energy (NYSE:WPX) 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.
About WPX Energy, Inc.
WPX Energy is an exploration and production company focused on developing its significant natural gas, natural gas liquids and oil reserves, particularly in the Piceance Basin, Bakken Shale and Marcellus Shale. WPX also has domestic operations in the Powder River and San Juan basins, as well as international investments in Argentina and Colombia. Go to http://www.wpxenergy.com/investors/subscribe-to-email/ to join our e-mail list.
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by WPX Energy on its website or otherwise. WPX Energy does not undertake and expressly disclaims any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC’s website at www.sec.gov.