Denbury Resources has sold oil and natural gas assets to Houston-based Quantum Resources Management for $900m. The assets are primarily located in the Permian Basin, Mid-continent area and East Texas Basin.
To date, the company has received net proceeds of approximately $889m including a prior $45m deposit and anticipates receiving an additional $5.5m within the next few weeks relating to exercised preferential rights.
The net proceeds of the sale will be used to repay approximately $830m of the $869m in bank debt currently outstanding on the company’s $1.6bn revolving credit facility, Denbury Resources said.
The company also said that in conjunction with the sale of these properties, its banks performed a re-determination of its borrowing base under the $1.6bn revolving credit facility and left the borrowing base in that amount unchanged.