DENVER – PDC Energy Inc. said Monday it has closed on its previously announced acquisition of Niobrara oil and gas assets in the Wattenberg Field in Adams and Weld counties for $327 million.
The acquisition was funded with cash and borrowings under the company’s revolving credit facility, which it said has been increased by$100 million to$525 million, effective June 29, 2012. The Company expects to have approximately$250 million drawn on its facility upon closing of the acquisition.
PDC — which recently officially changed its name from Petroleum Development Corp. didn’t disclose the seller.
The company said its net production from Wattenberg is expected to increase to about 15,600 barrels of oil equivalent per day. Current production is roughly 2,800 barrels of oil equivalent per day from approximately 700 wells.
”We are very excited to have expanded our position in the horizontal Niobrara play,” said James Trimble, the company’s Chief Executive Officer.
“The acquired assets are located almost entirely in the core Wattenberg Field, are largely contiguous with our existing assets, and provide us with an additional 180 horizontal Niobrara drilling locations as well as additional opportunities from Niobrara downspacing and horizontal Codell development.”
Trimble said his company plans to begin operating a second rig on our horizontal Niobrara acreage in early July.
“We are also confident the increase in our borrowing base, as a result of the acquisition, will provide us with more than sufficient liquidity to execute our accelerated drilling program in the Wattenberg Field while maintaining strong balance sheet metrics.”
Upcoming Conference Presentations
PDC is scheduled to present at EnerCom’s Oil & Gas Conferencein Denver, Coloradoon Tuesday, August 14, 2012. Please see the Company’s website at www.petd.com for full details and webcast information.