US-based oil and gas company Energen has signed an agreement to sell its Alabama Black Warrior Basin coalbed methane assets for approximately $160m.
The deal is expected to be completed in October. In addition to the coalbed methane properties, the buyer will also acquire the company’s third-party operating agreements.
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Energen intends to use the proceeds from the sale to reduce its short-term indebtedness.
The company’s revised production guidance ranges from 25.7 to 26.1 million barrels of oil equivalent (MMBOE) from all operations in 2013, after adjusting for fourth quarter production.
Energen is expecting about 1.4 MMBOE production and $11m income from discontinued operations in 2013.
The company had produced around 97 billion cubic feet of gas from its Black Warrior Basin properties as of 31 December 2012. At that time, it had around 750 MMBOE proved, probable, and possible reserves.
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By GlobalDataIn February 2012, Energen Resources signed an agreement to buy properties in the Permian Basin’s Wolfberry play in the US for $65.8m.
The properties include 29 producing wells, an estimated 50 undeveloped locations, and proved and probable reserves of around 8.5 million barrels of oil equivalent.
The estimated cost to develop the properties is $115m.
