El Paso Sells Utah Producing Properties to Westport
El Paso Corporation has entered into a purchase and sale agreement with Westport Resources Corporation to sell natural gas producing properties and related gas gathering facilities located in Utah for $502 million.
Under the agreement, El Paso Production Company and certain of its affiliated companies will sell substantially all of their natural gas assets in the Uintah Basin of northeastern Utah including El Paso's interests in the Natural Buttes and Ouray Fields. The assets include interests in about 1,070 wells (800 of which are operated by the company) on 240,000 net leasehold acres. Current net daily production from these wells is approximately 80 million cubic feet of gas equivalent, with additional upside drilling potential.
Also included in the sale are the related gathering facilities owned by El Paso Field Services in the Natural Buttes and Ouray Fields. The 240 miles of gathering pipelines associated with the fields have a capacity of about 200 million cubic feet per day (MMcf/d) with a current throughput averaging 150 MMcf/d. Gas gathered through the system is delivered to Colorado Interstate Gas Pipeline.
The transaction is expected to close by year-end and is part of El Paso's initiative to sell non-core assets, pay down debt, and further strengthen the company's balance sheet.