Houston-based W&T Offshore Inc. (NYSE: WTI) has agreed to sell assets in the Permian Basin to a newly formed Houston-based oil and gas company for $376.1 million.
Ajax Resources LLC, backed by affiliates of New York-based Kelso & Co., bought W&T's 25,800-acre property, known as Yellow Rose. The property includes 200 vertical and horizontal drilled and producing wells and produced approximately 3,000 barrels of oil equivalent in July.
Tracy Krohn, CEO and chairman of W&T, said the proceeds of the deal will go toward paying off the company's outstanding balance under its secured revolving credit facility and provide liquidity for future transactions.
"We are pleased to be monetizing our highly valued Permian Basin acreage. This sale will allow us to strengthen our balance sheet and improve our financial flexibility to pursue the acquisition of Gulf of Mexico assets while valuations are favorable," Krohn said in a statement.
W&T will retain a 1 to 4 percent sliding scale overriding royalty interest in the field.
The company relocated its headquarters to Houston shortly after Hurricane Katrina struck its former headquarters of New Orleans in 2005. W&T has most of its operations offshore in the Gulf of Mexico and onshore in the Permian Basin of West Texas.
Source: bizjournals.com
Ajax Resources LLC, backed by affiliates of New York-based Kelso & Co., bought W&T's 25,800-acre property, known as Yellow Rose. The property includes 200 vertical and horizontal drilled and producing wells and produced approximately 3,000 barrels of oil equivalent in July.
Tracy Krohn, CEO and chairman of W&T, said the proceeds of the deal will go toward paying off the company's outstanding balance under its secured revolving credit facility and provide liquidity for future transactions.
"We are pleased to be monetizing our highly valued Permian Basin acreage. This sale will allow us to strengthen our balance sheet and improve our financial flexibility to pursue the acquisition of Gulf of Mexico assets while valuations are favorable," Krohn said in a statement.
W&T will retain a 1 to 4 percent sliding scale overriding royalty interest in the field.
The company relocated its headquarters to Houston shortly after Hurricane Katrina struck its former headquarters of New Orleans in 2005. W&T has most of its operations offshore in the Gulf of Mexico and onshore in the Permian Basin of West Texas.
Source: bizjournals.com
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