PDC Energy Inc. (Nasdaq: PDCE) 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 US $200 million.
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 2013 through 2015.
The effective date of the transaction is Jan. 1 and it is expected to close in 2Q 2013. The assets to be sold are approximately 99% natural gas and include an estimated 85 billion cubic feet equivalent of net proved developed producing reserves as of Dec. 31. The assets currently produce 42 million cubic feet equivalent per day net and the sale is expected to reduce PDC's net production volume in 2013 by 10 billion cubic feet equivalent. Petrie Partners LLC advised PDC on the sale.
PDC Energy is a domestic independent energy company based in Denver that is engaged in the exploration, development and production of crude oil, NGLs and natural gas.