Union Pacific Resources Group sold its interests in theWattenberg area of Colorado’s Denver-Julesberg Basin toDenver-based United States Exploration Inc. for $41 million. Theproperties, which are in Adams, Arapahoe, Elbert and Weld counties,consist of 336 producing wells, which produced about 5.5 MMcf/d ofgas and 640 barrels of liquids/d in 1997. UPR retained its royaltyinterest in the properties. The transaction closed May 15 and waseffective Jan.1.
“This transaction is the first step toward accomplishing ourpreviously announced de-leveraging program. This sale is anencouraging sign as we proceed toward completing additionalproperty transactions,” said Jack L. Messman, UPR CEO.
The companies also executed an exploration agreement, givingUnited States Exploration the right to explore and develop certainundeveloped acreage in the Wattenberg area. UPR retains its royaltyinterest in these properties.
UPR is moving forward with its de-leveraging program withcurrent plans calling for reduced debt and a return to aninvestment-grade credit rating before year-end.. Executivesummaries for properties located in the Gulf of Mexico, SouthLouisiana, South Texas and East Texas will be available toprospective buyers by June 1. Executive summaries for properties inthe Rocky Mountains, Argentina, Egypt and Australia will beavailable by July 1. A complete list of the internationalproperties (non-Canadian) as well as those in the United States maybe viewed at UPR’s Internet deal room at Petroleum Exchange’s Website: www.petroleumx.com. Canadian properties that will be soldare being handled for UPR by Waterous Securities of Calgary, AB.Details concerning these properties can be obtained by visitingWaterous’ Web site: www.waterous.com.
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