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UPR Makes Another De-Leveraging Sale

UPR Makes Another De-Leveraging Sale

Union Pacific Resources Group (UPR) continues to march ahead with its de-leveraging program, announcing last week that it agreed to sell interests in certain South Texas oil and gas properties to Collins &amp Ware Inc. for $148 million. The sale is scheduled to close Oct. 30, subject to conditions, with an effective date of Sept. 1.

"When we announced our de-leveraging program in April, after our acquisition of Norcen Energy Resources and its many high-quality exploration and production assets, we assembled several packages of UPR properties that would both attract strong bids and help us to focus activities on our newly defined, high-potential core business areas," said CEO Jack Messman (See NGI April 6, 1998). "The agreement to sell these South Texas properties is the latest example of a successful de-leveraging strategy that is unfolding on or ahead of schedule."

The agreement with Collins &amp Ware follows the Aug. 24 announcement of the $158 million sale of UPR's interest in Matagorda Block 623 to Enron Oil and Gas, which closed Aug. 31 (See NGI Aug. 31, 1998). The company's asset sales program is continuing for properties in Canada, the Gulf of Mexico, South Louisiana, East Texas and the Rockies identified as part of the de-leveraging program.

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