DENVER, Nov. 03, 2016 (GLOBE NEWSWIRE) — QEP Resources, Inc. (NYSE:QEP) (“QEP” or the “Company”) announced today that it has reached agreement with one of its third-party midstream providers to resolve a commercial dispute and amend the agreement (the “Amendment”) under which the associated gas produced from the Company’s South Antelope acreage is purchased, gathered and processed (the “Existing Gas Purchase Agreement”). The Amendment extends the Existing Gas Purchase Agreement ten years beyond the original term, includes a fixed fee for services and provides for increased capacity. In addition, the parties have agreed to dismiss the arbitration proceedings and release each other from all claims arising under the Existing Gas Purchase Agreement.
At the end of the third quarter 2016, the Company had 23 gross operated horizontal wells on its South Antelope acreage waiting on completion. The Company expects to begin completing these wells during November 2016 and expects the completion activity of these wells to continue into early 2017. Due to the timing of the completions, the Company does not believe these wells will add material oil volumes in 2016, and as such, the Company is not revising oil, natural gas and NGL production guidance provided in its third quarter 2016 Earnings Release dated October 26, 2016.
About QEP Resources
QEP Resources, Inc. (NYSE:QEP) is an independent natural gas and crude oil exploration and production company focused in two geographic regions: the Northern Region (primarily Wyoming, North Dakota and Utah) and the Southern Region (primarily Texas and Louisiana) of the United States.