Western Gas Resources Purchases San Juan Basin Assets
Western Gas Resources
|Thursday, July 22, 2004
Western Gas Resources has signed a purchase and sale agreement to purchase certain oil and gas assets in the San Juan Basin of New Mexico from an undisclosed seller for approximately $82.2 million. Closing is expected to occur on October 1, 2004.
The purchase price includes 24,000 net acres (32,000 gross acres) with approximately 100 wells producing 12.6 MMcfd gross or 9.3 MMcfd net of coal bed methane gas. Proved reserves as of December 31, 2003 are estimated to be approximately 60 Bcf. The purchase price also includes approximately 130 miles of related gathering systems, which are currently connected to Western's existing San Juan River plant.
Peter Dea, President and Chief Executive Officer of Western, stated, "These assets are an excellent fit with our existing gathering and processing assets in the San Juan Basin and offer the potential for additional drilling locations. They fully support our strategy of being a premier producer and gatherer of unconventional natural gas in the Rocky Mountain region and serve to establish a new core integrated area for the Company."