Clayton Williams Energy Inc. (Nasdaq: CWEI) has closed on the sale of its Wolfberry oil and gas reserves, leasehold interests and facilities in Andrews County, Texas to an undisclosed buyer for $215.2 million.
The transaction, which closed April 24, was with an unidentified financial investor who bought a 95% limited partnership interest in the assets.
Proceeds will be used to reduce the amount outstanding on its revolving bank credit facility. The company’s borrowing base under the facility was reduced from $585 million to $470 million to account for the release of collateral, providing the company with $100 million of additional availability under the facility.
Under the terms of the agreement, Clayton Williams Energy will contribute 5% of the assets to a newly-formed limited partnership in exchange for a 5% general partner interest, and the partnership will purchase the remaining 95% of the assets from the company. The partnership will obtain the proceeds from the investor in exchange for a 95% limited partner interest.
The assets accounted for 21% of the company's total proved reserves at Dec. 31, and 16% of its total oil and gas production for the quarter ended Dec. 31.
Clayton Williams Energy, Inc. is an independent energy company based in Midland, Texas with assets primarily in Texas, Louisiana, and New Mexico. The company is headquartered in Midland, Texas. Clayton Williams Energy Inc. is an independent energy company engaged in the exploration for and production of oil and natural gas primarily in Texas, Louisiana, and New Mexico.
Recommended Reading
Marketed: Sage Natural Resources 34 Well Package in Tarrant, Wise Counties, Texas
2024-02-02 - Sage Natural Resources retained EnergyNet for the sale of a 34 package (ORRI) in Tarrant and Wise counties, Texas.
Marketed: Mississippian Play Opportunity in Blaine County, Oklahoma
2024-02-02 - An undisclosed seller retained EnergyNet for the sale of a Mississippian play opportunity in the Webb 15-22-1XH Well in Blaine County, Oklahoma.
Marketed: EnCore Permian Holdings 17 Asset Packages
2024-03-05 - EnCore Permian Holdings LP has retained EnergyNet for the sale of 17 asset packages available on EnergyNet's platform.
Marketed: Bendel Ventures 73 Well Package in Texas
2024-03-05 - Bendel Ventures LP has retained EnergyNet for the sale of a 73 well package in Iron and Reagan counties, Texas.
Marketed: Stone Hill Minerals Holdings 95 Well Package in Colorado
2024-02-28 - Stone Hill Minerals Holdings has retained EnergyNet for the sale of a D-J Basin 95 well package in Weld County, Colorado.