Clayton Williams sold its interests in 22 operated and 76 non-operated producing wells in North Louisiana to WildHorse Resources for $77 million, based on an effective date of April 1, 2010 and subject to customary closing adjustments. The assets that were sold in this transaction represent substantially all of the Company’s proved reserves in North Louisiana. None of the Company’s holdings in South Louisiana were included in this sale. The sale transaction is not expected to result in a significant gain or loss since the net proceeds from the sale approximate the carrying value of the assets being sold. Proceeds from the sale were used to repay indebtedness on the Company’s $300 million revolving credit facility, reducing the balance outstanding on the facility to approximately $127 million on the closing date.
The Company also recently acquired from a group of private investors an undivided 14% working interest in 36 Company-operated Wolfberry wells in Andrews County, Texas for $9.75 million, subject to customary closing adjustments. This purchase increased the Company’s working interest in these 36 wells to 100%. In addition to the oil and gas reserves attributable to the acquired interests, the Company increased its stake in approximately 5,700 gross acres under lease in this area from 86% to 100%.
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