US-based QEP Resources’ subsidiary QEP Energy Company has signed an agreement to divest natural gas assets in south-west Wyoming for $740m.
Under the agreement, QEP will sell all of its assets in the Pinedale Anticline field in Sublette County, Wyoming to Pinedale Energy Partners.
Together, the Pinedale assets comprise an estimated 964 billion cubic feet equivalent (bcfe) of proved reserves as of 31 December last year, with a net production of 234 million cubic feet equivalent a day (mmcfed) in the first quarter of this year.
QEP Resources chairman, president and CEO Chuck Stanley said: "As we continue to evolve as a company, these transactions are a necessary next step in simplifying our asset portfolio and delivering significant financial proceeds that will further strengthen our balance sheet and help fund future development projects and acquisition opportunities.”
In relation to the divestiture, the company will reimburse Pinedale Energy for up to $45m with regard to certain deficiency charges incurred related to gas processing and NGL transportation and fractionation contracts between 30 September this year and 31 December 2019.
Last month, the company completed the sale of certain non-core natural gas assets in southern Wyoming to an undisclosed buyer for $37.5m.
These assets contain an estimated 15.2bcfe of proved reserves as of 31 December last year, with a net production of around 4mmcfed in the first quarter of this year.
Subject to certain closing conditions, including regulatory approval, the transaction involving Pinedale assets will be completed by 30 September.