Progress Sells Oil, Gas Interests to Undisclosed Buyer for $255M
Progress Fuels Corp., a subsidiary of Progress Energy, said Tuesday it would sell some of its oil and natural gas interests in the Fort Worth basin of Texas for $255 million in cash to an undisclosed buyer. Proceeds from the sale, which is expected to be completed by the end of the year, will be used to reduce debt, the company said.
Once the sale is complete, Progress Fuels will have annual net gas production of approximately 22 Bcfe, with proven developed and proven undeveloped natural gas and oil reserves along the East Texas and Louisiana border.
"We capitalized on the favorable market conditions to realize substantial value from our natural gas portfolio that will be used to pay down debt," said Tom Kilgore, president of Progress Energy Ventures. "Our natural gas position in East Texas and Louisiana will be adequate to offset Progress Ventures' near-term natural gas price risk exposure from serving full requirements contracts in Georgia with our nonregulated generation plants."
Kilgore said that in the future, "we can economically add incremental natural gas reserves in the East Texas and Louisiana region given our existing natural gas infrastructure and strong regional position."
The company's December analyst meeting in New York City will be rescheduled in early 2005. The company will provide 2005 earnings guidance in its year-end 2004 earnings release, scheduled for Jan. 27.
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