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Noble Energy To Divest Non-Core DJ Basin Acreage For $608 Mln

Noble Energy, Inc. (NBL) announced Wednesday that it has signed a definitive agreement with SRC Energy Inc. (SRCI) to divest approximately 30,200 net acres from the Company's non-core DJ Basin position in Weld County, Colorado for $608 million. Included with the acreage sold is approximately 4,100 barrels of oil equivalent per day or Boe/d.

The transaction, effective as of November 1, is anticipated to close on two separate dates. Acreage and non-operated production are included in the initial closing by the end of 2017, followed by a second closing for operated producing properties by mid-2018.

The closings are subject to customary terms and conditions, with the initial closing representing over 90 percent of the total transaction value.

Approximately 50 percent of the acreage is located in the Company's Greely Crescent area and the remainder is in the Bronco area.

The company noted that proceeds from this transaction continue to highlight a strong market valuation for its DJ Basin position. It will be prioritized to further strengthen investment-grade balance sheet.

Gary Willingham, Noble Energy's Executive Vice President, Operations, said, "This sale of acreage in our Greely Crescent and Bronco development areas represents an acceleration of value as it was not likely to be developed by us for a number of years. Our DJ Basin activities, both now and for several years to come, will remain focused on the northern and eastern parts of the basin."

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