EOG Resources Inc. has divested all of its assets in Manitoba and certain assets in Alberta in two separate transactions that closed on Nov. 28, 2014, and Dec. 1, 2014.
Approximate proceeds from the divestitures were $410 million, net of customary transaction adjustments. As a result of these transactions, about $150 million of restricted cash related to future abandonment liabilities was released. The proceeds and cash will be used for general corporate purposes.
Current forecast production from the divested assets is approximately 7,050 bbl/d of crude oil, 580 bbl/d of NGLs and 1.2 MMcm/d (43.5 MMcf/d) of natural gas. Net proved reserves divested are estimated to be 7.7 MMbbl of oil, 0.8 MMbbl of NGLs and 2.2 Bcm (78.7 Bcf) of natural gas. EOG divested 1.3 million gross acres (1.1 million net), 97% of which were in Alberta. Of the approximate 5,800 producing wells sold, 5,255 were natural gas.
EOG has retained about 382,200 gross acres (282,100 net) in Alberta, British Columbia and Saskatchewan. EOG will maintain an operations office in Alberta.
Further details with respect to the counterparties and terms of the sale are not being disclosed.
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