By Mark Passwaters – SNL Financial
Denver-based PDC Energy Inc. said June 19 that it closed on a deal to sell its noncore Colorado natural gas assets to Caerus Oil and Gas LLC for approximately $185 million. The company said the money will allow it to focus on more profitable plays elsewhere.
PDC said the assets sold are approximately 99% natural gas in terms of reserves and include an estimated 85 Bcfe of net proved developed producing reserves as of Dec. 31, 2012. The company said the assets produced approximately 40 MMcfe/d during the first quarter of 2013.
James Trimble, president and CEO of PDC, said the move allowed the company to shift its focus to more liquids-rich unconventional plays in Colorado and elsewhere.
“We are very pleased to close this transaction and plan to redeploy the capital to develop our high-return, liquid-rich Wattenberg and Utica Shale horizontal drilling inventory,” he said. “With the closing, we have completed another major milestone in our transition toward a more liquid-rich asset base. We expect our 2013 production mix to be approximately 54% liquids, which is a significant change from 35% liquids in 2012. We expect to largely fund our 2013 capital program with the proceeds from the sale and internally generated cash flow.”