Williams ups stake in Colorado play
Natural-gas producer Williams Companies has agreed to buy a 24,000-acre
stake in Colorado's Piceance basin owned by SandRidge Energy and other
unnamed companies for $285 million.
SandRidge Energy said it expects its net gain from the stake sale will be
about $140 million.
The company already owns 170,000 acres in the region and said the basin is
currently its biggest source of natural gas, producing more than 600 million
cubic feet of natural gas per day.
The company estimates the new stake could produce more than 1.9 trillion
cubic feet equivalent of probable and possible reserves.
Williams estimates the assets will increase its probable and possible
reserves in the basin by more than 42% to 6.4 trillion cubic feet
equivalent.
The company plans to build two rigs on the land next year once it receives
the permits.
The deal is expected to close in the current quarter.
SandRidge shares surged $1.75, or 3.5%, to $51.20 in aftermarket trading.
08 May 2008 21:54 GMT
| last updated:
08 May 2008 21:56 GMT
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