Clayton Williams Energy Agrees to Monetize 95% of Andrews County Wolfberry Assets for $214M

Clayton Williams Energy (NASDAQ:

) today announced that it had entered into a transaction with a financial investor to monetize 95% of its Wolfberry oil and gas reserves, leasehold interests and facilities located in Andrews County, Texas (the “Assets”) for $214 million, subject to customary closing adjustments. The Company will use the proceeds from the transaction to reduce the amount outstanding on its revolving bank credit facility. At closing of the transaction, the borrowing base under the facility will be reduced from $585 million to $470 million to account for the release of collateral, providing the Company with approximately $99 million of additional availability under the facility. Closing is expected to occur on April 24, 2013.