SM Energy to Sell Eagle Ford Assets in Texas

SM Energy has entered into an agreement with undisclosed buyers to sell a portion of its Eagle Ford shale assets in Texas, US, for $225m.

The assets, which cover a total area of 62km² consists of the firm’s entire operated acreage in LaSalle County, Texas, and an immaterial portion of adjacent operated acreage in Dimmit County, Texas.

The buyers will receive about 12% of the takeaway capacity associated with SM Energy’s agreement with Eagle Ford Gathering.

The firm is in negotiations with additional potential transactions involving a material portion of its total Eagle Ford shale position in South Texas.

The transaction is expected to close in August 2011 and is subject to customary purchase price adjustments, closing conditions and transaction fees.