Colorado-based QEP Resources said that its subsidiary QEP Energy Company has agreed to divest natural gas assets in southwest Wyoming for a total sum of $777.5m in two different transactions.
In the first transaction, QEP will sell its gas assets in the Pinedale Anticline field for $740m to Pinedale Energy Partners, an affiliate of Oak Ridge Natural Resources.
The Pinedale Anticline field located in Sublette County has an estimated 964Bcfe of proved reserves as of December 31, 2016. Its net production in the first quarter has been reported to be 234MMcfed, of which about 12% was liquids.
QEP anticipates the divestiture to be closed by September end, subject to closing conditions which includes regulatory approval.
In another transaction, QEP completed the divestiture of select non-core natural gas assets located in southern Wyoming to an undisclosed buyer in June end to raise $37.5m.
The assets divested constitute an estimated 15.2Bcfe of proved reserves as of December 31, 2016. They had registered net production in the first quarter at nearly 4MMcfed, of which nearly 2% was liquids.
QEP chairman, president and CEO Chuck Stanley said: "Our Wyoming assets have been significant contributors to the company for many years and were critical to our early success.
“As we continue to evolve as a company, these transactions are a necessary next step in simplifying our asset portfolio and delivering significant financial proceeds that will further strengthen our balance sheet and help fund future development projects and acquisition opportunities.”
QEP Resources, a natural gas and crude oil exploration and production company, focuses its business in the Northern Region, especially in Wyoming, North Dakota and Utah and in the Southern Region, mainly in Texas and Louisiana.
In July 2016, QEP Resources had purchased additional oil and gas assets in the Permian Basin in Martin County, Texas for nearly $600m.