Warren Resources has sold its Wyoming coalbed methane (CBM) assets to Escalera Resources Co. Escalera will pay US$47 million for the assets, with US$42 million payable in cash at closing.
Lance Peterson, Warren's Interim CEO, said: "We are extremely pleased to announce the sale of our Atlantic Rim assets to Escalera. This strategic divestiture is another important step forward in our continuing strategy to give Warren the ability to transact on future high growth opportunities, as we further reduce debt and increase our liquidity."
Under the terms of the transaction, Warren will sell all of its interests in its CBM assets in the Atlantic Rim area of the Washakie Basin in Carbon County, Wyoming, as well as related midstream pipeline assets and an undivided 30% of its interest in certain deep rights associated with Warren's former leases in the Atlantic Rim area, to Escalera.
After consummation of the transaction, Warren will keep 70% of the operated deep rights connected to Warren's former leases in the Atlantic Rim area, which is, at present, being evaluated for potential upside in a number of the deep formations present.
Read the article online at: https://www.worldcoal.com/cbm/24062015/warren-resources-sells-its-wyoming-coalbed-methane-assets-2469/