Denbury Resources, an oil and gas company, has signed an agreement to sell its Haynesville and East Texas natural gas assets for approximately $217.5m to a private oil and gas company.
Production attributable to the properties to be sold averaged approximately 34mmcfe/d during the second quarter of 2010.
The sale is expected to close in 30 to 45 days and is subject to completion of customary due diligence and closing conditions.
The agreement contemplates an effective date of 1 September 2010, and consequently operating net revenue after 1 September, net of capital expenditures, along with other purchase price adjustments, will be accounted for as adjustments to the ultimate sales price.
The company plans to use the balance of proceeds from the sale to repay most of its currently outstanding bank debt.