Bayswater Enters Sale Agreement for DJ Basin Assets
Bayswater Exploration and Production, a Denver-based oil and natural gas development company, has announced a significant agreement to sell its assets in the Denver Julesburg Basin to Prairie Operating Company (Nasdaq: PROP). This transformative deal, valued at approximately $603 million in cash and stock, marks a pivotal moment for Bayswater.
Details of the Sale Agreement
According to Steve Struna, President & CEO of Bayswater, this agreement is the result of years of dedicated effort by the team focused on DJ Basin operations. Since commencing operations in this region back in 2009, Bayswater has built a strong reputation as a responsible operator, known for positively impacting the surrounding communities.
What Does the Sale Include?
The assets included in this transaction are substantial. Bayswater is selling around 24,000 leased acres, 300 producing horizontal wells located on 30 pads, and an impressive production rate of 25,000 barrels of oil equivalent per day (BOED). Additionally, the sale encompasses nine newly drilled horizontal wells that have yet to be completed and a saltwater disposal system managed by Bayswater.
Bayswater's Continuous Commitment to Growth
Bayswater operates with a vision centered on effectively acquiring, developing, and monetizing resources to ensure meaningful returns for its investors. For this transaction, the law firm of Davis Graham served as Bayswater's legal advisor, supporting the company throughout the negotiation process.
Future Plans After the Transaction
Despite this expansive sale, Bayswater remains committed to its operations in the DJ Basin. Post-transaction, the company will continue to operate 70 horizontal wells that yield approximately 18,000 BOED. Additionally, they are currently maintaining one rig actively drilling on their remaining leases. Furthermore, Bayswater holds an impressive 50,000 acres in the Northern Midland Basin in Texas, which is actively being developed, including 140 horizontal wells with a production capacity of around 20,000 BOED and a significant saltwater disposal system. The Texas assets remain unaffected by this transaction.
Reflections on the Importance of the Sale
Struna remarked that this sale signifies a crucial phase in the lifecycle of Bayswater's business operations. He expressed gratitude toward the dedicated efforts of all team members, vendors, and local stakeholders. The company plans to leverage newly raised capital to further its operations in Colorado while continuing to ensure responsible production methods for oil and natural gas—elements considered among the cleanest energy resources available.
Bayswater's Commitment to Responsible Energy Development
Bayswater is a privately held oil and natural gas development firm dedicated to reducing the impact of its activities on the air, land, and water. The company promotes the idea that developing oil and natural gas resources can coexist with environmental stewardship, advocating for sustainable practices in its operations.
Frequently Asked Questions
What are the key assets included in the sale to Prairie Operating Company?
The sale includes approximately 24,000 leased acres, 300 producing horizontal wells, and an output of about 25,000 BOED, among other assets.
Who was Bayswater's legal advisor for this transaction?
The law firm of Davis Graham provided legal counsel to Bayswater during the sale agreement process.
What is Bayswater's commitment following the asset sale?
Bayswater is committed to continuing operations in the DJ Basin and plans to use newly acquired capital to enhance its footprint while maintaining sustainable practices.
How much is the asset sale worth?
The asset sale agreement with Prairie Operating Company is valued at approximately $603 million in total, combining cash and stock transactions.
What is the future roadmap for Bayswater after this sale?
Bayswater intends to focus on its remaining assets, expanding operations in the DJ Basin and actively developing its holdings in Texas.
