The approximately 13,000 acres being sold include 75 gross (58.5 net) wells that is currently producing at an approximate gross rate of 15.7mmcfe per day (8.3mmcfed net).
Estimated proved reserves associated with the divested properties amount to 122.4bcfe, 55% of which are proved undeveloped.
The company intends to use the net proceeds from this sale to repay borrowings under its revolving credit facility.
The company expects to use the resulting additional capacity under its revolving credit facility to fund, in part, its 2011 capital expenditure plan, and for general corporate purposes.
This sale is expected to close in mid-May and is subject to customary closing conditions and purchase price adjustments.
