By OGJ editors
HOUSTON, Mar. 22 – A unit of Newfield Exploration Co. will purchase Uinta basin oil and gas interests from Harvest Natural Resources Inc. for $215 million.
Closing is set for May retroactive to Mar. 1, 2011. Both are Houston firms. Harvest sees net proceeds of $205 million after deduction for transaction related costs.
Harvest said the sale enables it to “quickly capture the value created by 2 years of highly successful land acquisition, exploration, appraisal and development work.” The company said it pioneered a new oil resource play in an area that had seen essentially no drilling activity for 25 years (OGJ Online, Mar. 2, 2011).
The oil and gas assets are located in Harvest’s Antelope project area in the Uinta basin of Utah and consist of 69,000 gross acres (47,600 net acres). Harvest owned a working interest of approximately 70% in the assets. The transaction includes wells operated by both Harvest and Newfield.