MDU Resources Group has completed the sale of its oil and natural gas assets in the US marketed by its subsidiary Fidelity Exploration & Production.
Fidelity’s offices in Denver are expected to be closed by mid-2016.
MDU has sold its oil and natural gas production and lease assets under several agreements since late 2015.
The sale included the company’s Bakken assets in North Dakota, Baker and Bowdoin assets, primarily in Montana and Powder River Basin assets in Wyoming.
Greater Gulf Coast assets, primarily in Texas, Cedar Creek Anticline assets in Montana and Paradox Basin assets in Utah were also sold as part of the agreements.
MDU Resources president and CEO David Goodin said: "This completes the final sale of our Fidelity properties.
"Exiting the E&P business lowers our risk profile, and it allows us to focus more on growing our other business operations."
With the sale of oil and natural gas assets, the company recognised proceeds and tax benefits of about $500m in aggregate.
The sale proceeds will be used to repay debt associated with Fidelity.
Proceeds in excess of debt repayments are planned to be reinvested into the company’s other business units, including the utility operations’ $1.5bn, capital expenditure programme for five years.
In November 2015, the company announced the signing of five purchase and sale agreements and closure of one of the agreements in October, for the sale of the oil and natural gas assets held by Fidelity.
The aggregate sale proceeds from the five agreements and estimated tax benefits were expected to be approximately $450m.
Image: MDU has sold its oil and natural gas production and lease assets since late 2015. Photo: courtesy of Rosemary Ratcliff/FreeDigitalPhotos.net.
