Clayton Williams Energy and its affiliates have sold all of their interests in 16 producing wells in south Louisiana to EnergyQuest II, a Quantum Energy Partners IV portfolio company, for approximately $95 million. The transaction is subject to customary closing adjustments.
The assets represent about half of the company’s proved developed reserves in south Louisiana. The company retained its interests in the Floyd, Alabama and Fleur prospects, as well as all of its holdings in other undeveloped prospects in south Louisiana.
The company expects to record a gain of approximately $33 million in the second quarter of 2008 in connection with this transaction. None of the company’s holdings in north Louisiana were included in this sale.