Caerus Oil & Gas LLC plans to buy what PDC Energy Inc. considers its noncore Colorado natural gas assets for $200 million.
The assets being sold are in northwest Colorado’s Piceance basin and northeastern Colorado. The transaction is expected to close during the second quarter, with a Jan. 1 effective date.
Assets being sold are 99% natural gas and include an estimated 85 bcf equivalent of net proved developed producing reserves as of Dec. 31, 2012. Production is 42 MMcfd net to PDC Energy.
James Trimble, PDC Energy president and chief executive officer, said proceeds from the divestiture will enable the Denver independent to accelerate its Wattenberg field and Utica shale horizontal drilling inventory.
PDC Energy’s holdings in Wattenberg field include the horizontal Niobrara and Codell plays. It also has assets in the Utica Shale in Ohio and the Marcellus shale in West Virginia.
PDC Energy formerly was known as Petroleum Development Corp.
