Noble Energy Inc., Houston, (NYSE: NBL) has acquired a 25% working interest in the Denver-Julesburg Basin in western Nebraska from partner Teton Energy Corp., Denver, (Nasdaq: TEC) in exchange for the forgiveness of all outstanding and future amounts owed by Teton related to the development of the Teton/Noble AMI project, a deal valued at about $3.8 million.
Noble holds the remaining 75% working interest. The exchange additionally includes Teton’s 50% operated working interest in its undeveloped Frenchman Creek acreage in eastern Colorado.
The assets include approximately 763,000 cubic feet per day equivalent of net production related to the Teton/Noble AMI as of December 2008. No net production is associated with the Frenchman Creek acreage. Net acreage is approximately 68,789 acres in the Teton/Noble AMI and 13,939 acres in the Frenchman Creek prospect.
The effective date is Feb. 1.
“This transaction represents another step in our plan to shed nonoperating assets as well as improve our liquidity position as we navigate through these challenging economic times,” says Karl Arleth, Teton president and chief executive. “We are divesting a nonoperated asset, where we had elected not to participate in new wells drilled in late 2008 due to disappointing well performance. We had no capital expenditures planned in these two areas in 2009 and expect minimal impact from this sale on Teton's business plans going forward.”
Teton Energy focuses on the Rockies and Midcontinent.
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