Denver's Emerald Oil selling assets in Sand Wash Basin for $10 million
Posted: 01/08/2013 11:35:30 AM MST
January 8, 2013 6:37 PM GMTUpdated: 01/08/2013 11:35:35 AM MSTBy Howard Pankratz
Denver-based Emerald Oil, Inc. announced Tuesday that it is selling approximately 30,902 net mineral acres in the Sand Wash Basin to a private oil and gas company for approximately $10 million .
Emerald has approximately 45,100 net acres in a joint venture in the Sand Wash Niobrara oil play, located in Moffat and Routt counties in Colorado and Carbon County in Wyoming.
Closing will occur during the first quarter of 2013, Emerald said.
In a related transaction, Emerald has agreed to assign its interests in its Fly Creek coal bed methane operation and three Niobrara oil wells drilled in 2011 to the remaining working interest holder of the assets and to pay $500,000 for Emerald's share of abandonment costs.
The assets subject to this transaction are located on the 30,902 acres being sold by Emerald.
The company said it will retain approximately 14,000 net mineral acres in and immediately surrounding the Focus Ranch unit located in Routt County.
Emerald will also retain its 45 percent interest in the six-inch diameter natural gas gathering pipeline that extends approximately 18.5 miles in length from the Fly Creek CBM production facilities located in Moffat County to a Questar pipeline connection near the town of Baggs, Wyo.
Emerald has focused primarily on the development of its approximately 48,800 net acres in the Williston Basin in North Dakota and Montana.