Noble Energy has signed a definitive agreement with SRC Energy to divest about 30,200 net acres from the company’s non-core Denver-Julesburg (D-J) Basin position in Weld County, Colo.
The sales price is $608 million.
The deal includes average production of 4,100 barrels of oil equivalent per day (boe/d) and 600 drilling locations. Multiple development pads are already under permit and much of the acreage is HBP.
The transaction, effective as of Nov. 1, is anticipated to close on two separate dates, with acreage and non-operated production included in the initial closing by the end of 2017, followed by a second closing for operated producing properties by mid-2018. The closings are subject to customary terms and conditions, with the initial closing representing over 90 percent of the total transaction value.
Combined with SRC’s existing acreage, the company will hold about 90,000 net acres with more than 1,700 gross well locations. The deal also boosts SRC’s leasehold by 50 percent and its drillable locations by 55 percent.
Noble’s D-J Basin position will shrink by about 8 percent to 335,000 net acres.