US oil and natural gas company Bayswater Exploration and Production has entered into a definitive agreement to sell certain assets in the Denver Julesburg Basin (DJ Basin) to Prairie Operating Company.

The transaction, valued at approximately $603m, includes cash and stock considerations.

The assets involved in the sale encompass roughly 24,000 leased acres, 300 producing horizontal wells across 30 pads and production of around 25,000 barrels of oil equivalent per day (boepd).

The deal also includes nine newly drilled but uncompleted horizontal wells and a saltwater disposal system operated by Bayswater.

Bayswater president and CEO Steve Struna said: “Today's agreement represents the culmination of years of work by our talented and dedicated DJ Basin team.

"Bayswater has been operating in the DJ Basin since 2009. We are proud of the high-quality asset we have built, our reputation as a responsible operator and the positive impact we have had in surrounding Weld County communities."

Post-transaction, Bayswater will retain control of 70 horizontal wells with an output of roughly 18,000boepd.

The company also owns 50,000 acres in Texas' Northern Midland Basin, which remain unaffected by the recent transaction.

This Texas portfolio comprises 140 horizontal wells with a combined production of approximately 20,000boepd, saltwater disposal infrastructure, and Tejon Treating and Carbon Solutions, a gas-gathering and treating business affiliated with Bayswater in the Midland Basin.

Struna added: "This sale is a key part in the natural life cycle of our business. I am grateful to all my Bayswater field and office colleagues, our vendors, suppliers and local community stakeholders.

"We remain committed to operating in the DJ Basin and look forward to rebuilding our Colorado footprint with newly raised capital and continuing to responsibly produce Colorado oil and natural gas – the cleanest energy molecules on the planet."