Denver: home to Infinity Energy Resources
Infinity sells Rockies assets to Forest
Denver-based Infinity Energy Resources said it would sell producing oil and gas properties in Wyoming and Colorado, as well as stakes in undeveloped leases, to Forest Oil for $17.4 million in cash.
Infinity said the lands included almost all of its Wyoming-based subsidiary’s producing assets, as well as shares in undeveloped prospects in Routt and Sweetwater counties in Colorado.
Infinity said it expected to pocket about $16 million from the deal, which it would use to pay down debt and settle derivative liabilities.
Infinity chief executive Stanton Ross said the deal would allow the company to focus on its core assets in the Piceance Basin and in the Lebarge properties in the Rocky Mountains.
Infinity also said it had farmed out a 75% operated working interest to Forest on Barnett Shale leaseholds in Erath County, Texas. Forest stands to earn a 50% interest in about 31,000 acres of undeveloped acres and existing infrastructure in Erath County.
Infinity said it would retain 100% interest in all its existing wells on the properties.
The company’s chief operating officer Renato Bertani said the sale and farm-out deals were part of a new business plan designed to solve cash-flow problems at the company and restore it to growth.
The deals are expected to close by 7 January, the company said in a statement.