US-based Questar subsidiary Wexpro will acquire an additional interest in natural gas-producing properties in the southwestern Trail Unit of the Vermillion Basin in Wyoming, US, for approximately $106.4m.
The company already holds a 46% working interest in the properties being acquired. The new agreement will increase the firm’s interest to 88%.
The acquired assets are expected to add around 118 billion cubic feet equivalent (Bcfe) of net proved gas reserves, of which 45% are currently proved-developed.
The company has identified around 172 well locations for future development, in addition to 78 producing wells.
Wexpro plans to develop Mesaverde sands in the assets, which include Almond, Canyon, Creek and Trail. The company is expecting about 2 Bcfe to 3 Bcfe from each Mesaverde well.
Questar chairman, president and CEO Ron Jibson said that the acquired assets add value to one of the firm’s premier assets.
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By GlobalDataWexpro executive vice president and COO Jim Livsey said: "Trail’s repeatable low-risk development locations are ideal for Wexpro’s business model."
