Bonanza Creek Energy Inc. (NYSE: BCEI) said Aug. 6 it sold its Midcontinent assets to an undisclosed buyer for $117 million cash.
The transaction comes less than a year after Bonanza Creek's merger with SandRidge Energy Inc. (NYSE: SD) was terminated following pressure from Carl Icahn, an activist investor of SandRidge.
Bonanza Creek's Midcontinent position includes about 11,000 net acres located in Lafayette and Columbia counties, Ark., primarily targeting the Cotton Valley Formation.
Associated net production from the assets during first-quarter 2018 was about 3,000 boe/d (55% oil). The assets also had proved reserves of about 12 million boe (100% PDP) at year-end 2017.
The company said its borrowing base remained unchanged at $192 million after the closing of the divestiture on Aug. 6.
“This transaction allows us to realize the value of the asset and turn our full attention to opportunities with greater long-term potential for Bonanza Creek,” Eric Greager, president and CEO, said in a statement.
Bonanza Creek's remaining assets are located in the Rocky Mountain region in the Wattenberg Field, focused on the Niobrara and Codell shale formations.
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