Noble Energy, Inc. (NBL) announced that it has signed a definitive agreement to sell certain oil and natural gas properties in Kansas to an affiliate of Citation Oil & Gas Corp., a privately held Houston based oil and gas company, for approximately $140 million. The transaction has an effective date of April 1, 2012 and is expected to close in September 2012, subject to customary closing conditions and adjustments.
The properties include Noble Energy's interest in about 250 producing wells on approximately 14,000 net acres. As of the effective date, net production was approximately 1,000 barrels of oil equivalent per day and net proved reserves were approximately 7 million barrels of oil equivalent. Production is almost entirely crude oil.
David L. Stover, Noble Energy's President and COO, commented, "The Kansas property divestiture is our third announced sale this quarter and completes the first phase of our onshore non-core divestment plan. These transactions, along with the sales of our Dumbarton and Lochranza assets in the North Sea, are expected to generate approximately $1.1 billion of after-tax proceeds by the end of the third quarter. The next phase of our non-core divestment program, continuing into 2013, involves small asset packages in the Mid-continent, Gulf Coast, San Juan, and Ark-La-Tex areas and our remaining assets in the North Sea."
Tudor, Pickering, Holt & Co. advised Noble Energy on the transaction.