PDC Energy Consolidates Core Wattenberg Position through Bolt-On Acquisition and Strategic Acreage Trade
For a map related to these transactions, visit ‘Newsroom' on the ‘Investor Relations' page on PDC's website at www.pdce.com.
President and Chief Executive Officer,
Acquisition (Prairie Area)
The Acquisition consists of approximately 8,300 net acres together with current net production of approximately 2,200 barrels of oil equivalent per day, of which approximately 60 percent is crude oil. The Company estimates the Acquisition will add an incremental 240 gross drilling locations as well as increase the working interests in nearly 60 existing PDC locations. Also included are 30 operated drilled uncompleted wells.
The newly acquired acreage, combined with the Company's existing acreage, is expected to result in a consolidated position of approximately 30,000 net acres in the Middle and Outer Core areas of the Wattenberg Field, and will be referred to as its Prairie Area. The Company anticipates closing this transaction late in the fourth quarter of 2017 and funding the acquisition with available cash and debt.
Acreage Trade (
Pursuant to the terms of the Acreage Trade, this strategic transaction includes leasehold acreage only, and does not include production, wellbores or existing facilities. PDC expects to receive approximately 11,700 net acres in exchange for approximately 12,100 net acres, subject to title examination and other customary adjustments. The difference in net acres is primarily due to variances in working and net revenue interests.
The newly acquired acreage, combined with the Company's existing acreage and portions of a previously announced acreage trade, is expected to result in a consolidated position of approximately 17,500 net acres in the Inner and Middle Core areas of the Wattenberg Field. The Company will refer to this area as its
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements in this news release and all other statements other than statements of historical fact, are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. The transactions contemplated by the Acquisition and the Trade are is subject to continuing diligence between the parties; accordingly, there is a possibility such transactions will not occur within the expected timeframe or at all. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from the forward-looking statements. PDC urges
you to carefully review and consider the cautionary statements made in this press release, the Item 1-A Risk Factors in the 2016 Annual Report on Form 10-K for the year ended
Senior Director Investor Relations
Manager Investor Relations
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