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Papa, the former EOG chairman and CEO, said the assets offer the best percentage growth potential of any small cap Permian Basin company.
Delek said its investment is expected to reach $162 million. The sale is still subject to lender and regulatory approval, the companies said, Reuters reported.
Wells Fargo Securities LLC was Bill Barrett Corp.’s adviser.
The total purchase price of $2 million will be paid by Aug. 30, which is the scheduled closing date, International Western Petroleum said.
The divestiture is the latest example of struggling oil and gas producers selling off assets in a bid to survive the global crude price rout, which has lasted since mid-June.
Borrowings under the amended facility, together with proceeds from new equity commitments led by The Energy & Minerals Group, funded the acquisition and the repurchases of second-lien notes.
PetroShare, based in Centennial, Colo., will be the operator in the acquired acreage position
The acquisition also includes a 50% operated interest in a 190-kilometer oil pipeline network and a 66.7% operated interest in the Bedekaspel exploration license located in the Permian Rotliegend gas fairway.
The deal announcement on June 27 is a blow to Denmark's A.P. Moller-Maersk, which has been operating the oil field since 1992, Reuters said.
Ecopetrol has been selling assets in a bid to fund its investment plan, which is down by $1.8 billion this year, Reuters reported.
With the acquisition’s closing, Whitecap’s borrowing base has a lending value of about CA$1.3 billion. The credit facility will be maintained at CA$1.1 billion. The estimated year-end net debt is CA$830 million.
The transaction’s effective date is May 1, and it is subject to customary due diligence and closing conditions. It is expected to close in late July.