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Penn Virginia Corporation Message Board

  • dormie18 dormie18 May 21, 2013 11:28 AM Flag

    Laredo's Anadarko Basin sale benefits PVA

    May 21 (Reuters) - Laredo Petroleum Holdings Inc said it would sell its assets in the Anadarko Basin in Western Oklahoma and Texas to affiliates of EnerVest Ltd for $438 million to raise capital for its drilling activities in the Permian Basin.

    Laredo shares rose 9 percent in early morning trade.

    EnerVest, which manages oil and gas properties on behalf of institutional investors, will acquire about 104,000 net acres of leasehold held by Laredo.

    Laredo produced about 4.9 billion cubic feet of liquids-rich natural gas and about 49,600 barrels of crude oil and condensate from the Anadarko Basin in the first quarter.

    The deal works out to $7,780 per thousand cubic feet equivalent of daily production, analysts at Global Hunter Securities wrote in a note to clients.

    "Best read-through is for Chesapeake Energy, whose Anadarko Basin assets are commonly overlooked," they wrote.

    Analysts at SunTrust Robinson Humphrey said the deal would also be a positive for Penn Virginia Corp, which holds acreage close to Laredo's.

    Laredo had raised more than expected from the asset sale, they wrote.

    The company expects to add two horizontal rigs in its Garden City area of the Permian Basin in west Texas upon completion of the deal, most likely during the third quarter.

    Laredo was advised by Wells Fargo Securities LLC. Akin Gump Strauss Hauer & Feld LLP was the company's legal adviser.

 
PVA
4.88+0.130(+2.74%)Jan 30 4:05 PMEST

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