The assets represent substantially all of the company’s proved reserves in North Louisiana. None of its holdings in South Louisiana were included in this sale. Clayton Williams said that the sale transaction is not expected to result in a significant gain or loss since the net proceeds from the sale approximate the carrying value of the assets being sold.
According to the company, proceeds from the sale were used to repay indebtedness on its $300m revolving credit facility, reducing the balance outstanding on the facility to approximately $127m on the closing date.
Clayton Williams also said that it has recently acquired from a group of private investors an undivided 14% working interest in 36 Wolfberry wells in Andrews County, Texas for $9.75m, subject to customary closing adjustments.
This purchase increased the company’s working interest in these 36 wells to 100%. In addition to the oil and gas reserves attributable to the acquired interests, the company increased its stake in approximately 5,700 gross acres under lease in this area from 86% to 100%.
