PDC Energy to Sell Non-Core Colorado Nat-Gas Assets for ~$200M
PDC Energy, Inc. ("PDC" or the "Company") (Nasdaq: PDCE) today announced the Company has signed a definitive agreement to sell its Piceance, NECO, and other non-core Colorado holdings to Denver-based Caerus Oil and Gas LLC for approximately $200 million in cash, subject to purchase price adjustments. The transaction includes the buyer's assumption of all PDC's firm transportation obligations related to the sale assets as well as certain natural gas hedging positions for the years 2013 through 2015.
The effective date of the transaction is January 1, 2013 and it is expected to close in the second quarter of 2013, subject to customary closing conditions. The assets to be sold are approximately 99% natural gas and include an estimated 85 billion cubic feet equivalent ("Bcfe") of net proved developed producing reserves as of December 31, 2012. The assets currently produce approximately 42 million cubic feet equivalent per day net and the sale is expected to reduce PDC's net production volume in 2013 by approximately 10 Bcfe. Petrie Partners LLC advised PDC on the sale.
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