DJR Energy to Acquire $480MM Worth of San Juan Assets from Encana
Denver-based DJR Energy will purchase San Juan Basin assets from Canadian energy producer Encana Corporation in a $480 million deal, both companies announced Oct. 1.
The sale includes 182,000 net acres and, when combined with DJR’s existing assets, the company will soon have a total of more than 350,000 net acres focused in the oil window of the San Juan Basin, located in New Mexico.
According to Encana, in 2017, the assets delivered average production of about 5,400 barrels of oil equivalent per day including 3,900 barrels per day of liquids.
Encana CEO Doug Suttles said the transaction adds to the company’s financial strength and falls in line with its focus on maximizing value of its assets and disciplined allocation of capital.
“We are now poised to become a dominant player in the San Juan Basin as we combine their asset with our existing footprint and focus our efforts on further developing our acreage,” DJR CEO Dave Lehman said in a company statement.
The sale is subject to closing conditions, but the transaction is expected to close in the fourth quarter of 2018 with an effective date of April 1, 2018.
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