Petroleum Development Corp.

Transaction Type
Sellers
Marketers
Basin
Permian, Appalachian, D-J
Post Date
Close Date
Estimated Price
0MM
Description

Petroleum Development Corp. (dba PDC Energy), Denver, (Nasdaq: PETD) plans to sell Permian Basin Wolfberry, northeastern Colorado and other acreage, and also solicit joint venture partiers in the Utica, according to Wells Fargo Securities LLC.

PDC is offering all of its 12,800 Permian acres, which are currently producing at rate of 1,400 barrels of oil equivalent per day. Total estimated reserves are 23 million barrels equivalent (on 40-acre spacing). The 81,400 northeastern Colorado acres are producing at 10 million cubic feet of gas per day with proved reserves of 40 billion cubic feet, reports Wells Fargo.

PDC is actively seeking a JV partner for its approximately 40,000 held-by-production Utica acres in the wet gas and oil window.

The company reports that the divestiture program will allow it to focus its investment on the Rockies and Appalachia, provide funding for recent acquisitions, and provide the balance sheet strength and financial flexibility to pursue additional strategic transactions, according to Wells Fargo.

These deals are expected to close in late 2011 or early 2012, with projected proceeds of $350- to $450 million.