Calpine to Raise $223 Mln from Sale of Rocky Mtn Gas Sale

Calpine has entered into two agreements to sell its Rocky Mountain natural gas reserves in the Colorado Piceance Basin and New Mexico San Juan Basin for approximately $223 million. Two U.S. gas companies will acquire these assets for approximately $140 million and approximately $83 million, respectively, less adjustments to reflect a July 1, 2004 effective date. Combining the proceeds from these sales with the proceeds from its recently announced Canadian gas reserves sale, Calpine will raise nearly $850 million.

"Calpine's Rocky Mountain sale demonstrates our continued ability to realize added value in today's robust gas market," stated Bill Berilgen, Calpine's executive vice president and head of natural gas operations. "Moving forward, exploration and production remains an integral part of our existing and future strategy in the power sector. Our Rocky Mountain E&P team will continue to enhance Calpine's technical competitive edge and support our North American natural gas and power operations."

The company's Rocky Mountain assets being sold represent approximately 120 billion cubic feet equivalent of proved gas reserves, producing approximately 16.3 million net cubic feet equivalent per day of gas. Net proceeds from these sales will be used to reduce the amount outstanding under Calpine's existing $500 million first lien indebtedness. The company expects to close the transactions in early September pending regulatory approvals and other conditions of closing.

Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $51.46/BBL 0.61%
Light Crude Oil : $50.52/BBL 0.64%
Natural Gas : $2.83/MMBtu 5.35%
Updated in last 24 hours