Petroleum Development Corp. Sells Portion of North Dakota Property
Petroleum Development Corporation has sold a portion of its North Dakota properties, effective December 31, 2007, for approximately $34.7 million. The properties, located in Dunn, Williams and McKenzie Counties, North Dakota, include interests in five producing Bakken wells and approximately 72,000 net undeveloped acres.
The reduction in Company production and proved reserves as a result of the transaction is not material. The Company anticipates it will recognize an after-tax impact on earnings of approximately $3 million to $5 million in its fourth quarter. The Company anticipates utilizing the proceeds from the transaction to pay down debt. Subsequent to the sale, the Company retains ownership in three producing wells in Dunn County, ten producing wells in Burke County and approximately 58,000 acres of leasehold in Burke County.
Eric Stearns, Executive VP, commented on the sale. "Our North Dakota Bakken project has performed below our initial expectations. We believe redirecting capital and manpower efforts from this area to our successful core areas of operations, along with renewed focus on Appalachia and commencement of activity in the Barnett Shale, will further enhance our ability to grow the Company and build shareholder value."
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