PDC Energy, Inc. ("PDC" or the
"Company") 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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