Bill Barrett Corp. (NYSE: BBG) closed on its sale of the West Tavaputs natural gas property located in the Uinta Basin, Utah to affiliates of EnerVest Ltd. for $369 million, the company announced Dec. 10.
Denver’s Barrett holds interests in properties located in the Piceance, Uinta and Denver-Julesburg basins in the Rocky Mountain region.
Proceeds from the transaction have been applied towards the $390 million balance, as of Sept. 30, on the company's revolving credit facility. The company's borrowing base on its revolving credit facility was reduced by $200 million to $625 million in conjunction with the asset sale and will be adjusted to reflect year-end reserves as part of the normal redetermination schedule in March 2014.
The total transaction value includes $46 million for the purchaser's assumption of the company's lease financing obligation related to compressor units on the property. The transaction value was adjusted to the Aug. 1 effective date, based on preliminary accounting data, and for other customary closing adjustments, providing net cash proceeds to the company of $310 million.
Houston-based EnerVest, founded in 1992, acquires, develops and operates oil and gas fields in 15 states. As of November, the company had made seven acquisitions worth $1.4 billion.
As of Dec. 9, EnerVest sold QEP Resources Inc. (NYSE: QEP) Permian Basin assets for $950 million.
Bill Barrett Corp. is an independent energy company engaged in the exploration, development, and production of crude oil and natural gas in the U.S.