Antero in Piceance gas assets sale

by on November 5, 2012 12:31 pm BST

A mystery private company has come in with a cash offer of $325 million for the assets as well as other payments totalling another $191 million.

Antero is getting rid of its 61,000 net acres of leasehold and 30 miles of gathering pipelines in western Colorado in the sale.

The assets have estimate proved developed reserves of 205 billion cubic feet equivalent of gas with current production at 59 million cubic feet equivalent per day net from 284 gross operated wells.

“The transaction does not include Antero’s 78 Bcf of CIG index (Rockies) natural gas hedges through 2016 that have a cash value of approximately $100 million,” Antero said.

Antero Resources chairman and chief executive Paul Rady commented: “The Piceance asset sale allows Antero to redeploy capital and human resources to its Marcellus and Utica Shale projects where we are focused on the development of liquids-rich natural gas and oil reserves. 

“With the closing of the Piceance transaction, and our Arkoma Basin exit earlier in 2012, Antero will complete its transformation into a pure-play Appalachian Basin shale producer with a large scale, low cost, liquids-rich drilling inventory.”