The latest sale includes all interests in the Williston Basin assets which include nearly 73 gross wells and 28,000 net lease acres.

At the end of 2011, total proved reserves for these properties were 2.2 million barrels of oil and 3.4 BCF of natural gas.

Black Hills plans to use net sale proceeds, expected in the range of $230m to $240m, for debt reduction and general corporate purposes.

Black Hills chairman, president and chief executive David R Emery said this sale will enhance the firm’s ability to self-fund planned growth projects, such as the $237m Cheyenne Prairie Generating Station, without issuing equity.

"The $243 million sales price for only 13 percent of our proved reserves exceeds the value currently assigned to our entire oil and gas business by the street," Emery added.

"We remain focused on realizing the significant upside opportunity of our remaining oil and gas assets, including the Mancos shale gas potential in the San Juan and Piceance basins."

The sale has an effective date of 1 July 2012, with an estimated closing date on or before 30 September 2012.

Black Hills Exploration & Production holds the interests jointly with Helis Oil & Gas and others partners.

 

 

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