Denver-based . said Wednesday that it is selling its West Tavaputs natural gas property in Utah’s Unita Basin for $371 million.
The total consideration to the undisclosed buyer is the $371 million and includes approximately $46 million for the purchaser’s assumption of the lease financing obligation for compressor units on the property.
The company said that the proceeds will be applied to reduce the outstanding debt under the company’s revolving credit facility.
The transaction includes approximately 35,000 net acres, 300 producing wells, and 265 billion feet equivalent net proved reserves.
“Completing this transaction is consistent with our objectives to partially fund our capital program through asset sales, to end 2013 with total debt less than year-end 2012 and to divest projects where the company is not actively investing,” said CEO and president Scot Woodall.
He said that Barrett’s long-term debt of $1.248 billion on June 30 will be reduced to $877 million.
“We expect to exit 2013 with a production split that is approximately 40 percent oil,” said Woodall.
The transaction is expected to close before the end of the year.
Howard Pankratz: 303-954-1939, hpankratz@denverpost.com or twitter.com/howardpankratz
