Noble Energy has agreed to divest some of its oil and natural gas properties in Colorado, US, to Synergy Resources for $550m.
The transaction includes about 72,000 acres situated in Weld County, primarily in and around the city of Greeley, within the DJ Basin.
Average daily production on the assets included in the deal is about 2,400 barrels of oil equivalent per day, with around two-thirds operated and one-third non-operated.
The acreage and production divested represent nearly 8% and 2%, respectively, of Noble Energy’s total assets in the DJ Basin.
The company has drilled 14 horizontal wells on the acreage in the last four years. More than 80% of the divested lands are held by production from vertical wells, enabling for orderly horizontal development.
Synergy has identified more than 900 locations on the acquired lands, of which over 800 are suitable for mid, long and extended length laterals.
Synergy Resources chairman and CEO Lynn Peterson said: "This acquisition is transformational for Synergy and a significant step forward in the Company’s evolution to become a leading operator in the Wattenberg Field."
Noble Energy chairman, president and CEO David Stover said: "Our DJ Basin development activities are currently focused on Wells Ranch and East Pony, where we have a deep inventory of long lateral drilling opportunities in an oily part of the basin.
"In addition, our existing infrastructure in these areas provides a competitive advantage."
The deal is expected to close next month, subject to customary terms and conditions.