DENVER, May 24, 2018 /PRNewswire/ — Cimarex Energy Co. (NYSE: XEC) announced today that it has signed a purchase and sale agreement to sell oil and gas properties principally located in Ward County, Texas, for $570 million in cash to Callon Petroleum. Production from these properties is approximately 6,831 barrels of oil equivalent per day (73 percent oil) and is mostly from the Bone Spring formation. The undeveloped acreage includes 18,925 net Wolfcamp acres of which 11,500 net acres have rights to the base of the Wolfcamp.
“The sale of the Ward County assets is part of our continuous portfolio optimization and high-grading of our investment opportunities,” said Tom Jorden, Cimarex Chairman, President and CEO. “Cimarex was among the first horizontal operators in the Bone Spring formation in Ward County and it’s been a great area for us over the years. However, the remaining Wolfcamp opportunities have not competed for capital versus other Cimarex projects.”
The transaction is expected to close in the third quarter of 2018, subject to customary closing conditions and adjustments.
Scotiabank served as financial advisor to Cimarex on this transaction.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.