By OGJ editors
HOUSTON, July 27 -- Whiting Petroleum Corp., Denver, plans to buy the oil and gas assets of Celero Energy LP, Midland, Tex., in two separate agreements worth a total combined cash-stock value of $802 million.
Celero's two core assets, Postle field in the Oklahoma Panhandle and North Ward Estes field in the Permian basin, account for most of the total asset value. Anticipated closing dates are Aug. 4 for Postle field and Oct. 4 for North Ward Estes field.
Total estimated proved reserves for the properties at 734 bcf of gas equivalent as of July 1, of which 94% is oil and 43% is developed. After the closings, Whiting will operate 95% of the properties, which produced during the first quarter at an average net rate of 7,510 b/d of oil and 2.8 MMcfd of gas.
Whiting said the Celero properties hold potential for exploration, development, and enhanced recovery.
Celero said the transactions involve cash and equity consideration of $785 million cash and 441,500 shares of Whiting common stock.
