Bonanza Creek Energy Inc., Denver, has agreed to and has simultaneously closed on the sale of its operations in the US Midcontinent for $117 million in cash. The buyer was undisclosed.
The divested operations include 11,000 net acres in Lafayette and Columbia counties, Ark., primarily targeting the Upper Jurassic-Lower Cretaceous Cotton Valley formation. Proved reserves as of Dec. 31, 2017, were 12 million boe (100% proved developed) and associated net production during this year’s first quarter was 3,000 boe/d, 55% of which was oil.
Bonanza Pres. and CEO Eric Greager said the deal allows the company to realize the value of the asset and turn its attention to opportunities with greater long-term potential. The company’s other assets are in Wattenberg field.
A late 2017 acquisition deal with SandRidge Energy Inc., Oklahoma City, was canceled in January (OGJ Online, Jan. 12, 2018).