Bill Barrett Divests West Tavaputs Assets to Undisclosed Recipient
Bill Barrett Corporation is selling the company’s West Tavaputs natural gas property located in the Uinta Basin, Utah. The $371 million sale includes about $46 million for the purchaser’s assumption of the lease financing obligation for compressor units on the property.
The company has not disclosed the purchaser’s information, and the sale is expected to close before year-end.
“Completing this transaction is consistent with our objectives to partially fund our capital program through asset sales, to end 2013 with total debt less than year-end 2012 and to divest of projects where the company is not actively investing,” stated Chief Executive Officer and President Scot Woodall, in a press release. “We are pleased with the value received, which is 5.6 times cash flow (based on second quarter of 2013 field level cash generated) and approximately $5,450 per thousand cubic feet equivalent per day of flowing production.”
The field is located in northeast Utah in the oil-saturated Altamont-Bluebell trend. It was estimated that the property held 265 Bcfe of proved reserves with a net production of 34.9 Bcfe in 2012.
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