Denver-based Cimarex Energy Co. (NYSE: XEC) has entered into an agreement to sell certain properties in Ward County, Texas, to Natchez, Mississippi-based Callon Petroleum (NYSE: CPE).
The purchase price is $570 million in cash.
The properties produce about 6,831 barrels of oil per day (73 percent oil), mostly from the Bone Spring formation.
"The sale of the Ward County assets is part of our continuous portfolio optimization and high-grading of our investment opportunities," said Tom Jorden, Cimarex chairman, president and CEO in a release. "Cimarex was among the first horizontal operators in the Bone Spring formation in Ward County and it’s been a great area for us over the years. However, the remaining Wolfcamp opportunities have not competed for capital versus other Cimarex projects."
Thomas E. Jorden is chairman, president and CEO of Denver-based Cimarex Energy Co.
Scotiabank served as financial advisor to Cimarex on the transaction, which is expected to close in the third quarter of 2018.
Cimarex shares closed at $94.95 Tuesday.
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