WPX Energy has announced it will divest its mature coalbed methane (CBM) holdings as it looks to focus on margin improvement.
The company has agreed to sell its remaining mature, CBM holdings in the Powder River Basin (PRB) for US$ 155 million in cash. As part of the transaction, WPX also releases firm transportation with US$ 30 million in future demand obligations.
Mid-year reserves in the basin are 222 billion ft3 equivalent and Q2 production was 154 million ft3/day, which includes operated and non-operated working interests in approximately 5000 wells. WPX has not actively drilled in the basin since 2011.
In 2013, production in the basin represented approximately 14% of the company’s total production, but generated only 5% of WPX’s adjusted EBITDAX results, excluding the impact of unused transportation.
“We’re moving quickly to build scale and create additional shareholder value,” said Rick Muncrief, WPX president and CEO.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/cbm/01092014/us-firm-divests-from-cbm-cbm102/