Laramie Energy Inc. said March 3 it closed the acquisition of certain properties in Colorado's Piceance Basin from an undisclosed seller for $157.5 million.
Simultaneously, Par Pacific Holdings Inc. (NYSE: PARR) completed a $55 million investment in Laramie, its subsidiary.
The acquisition totals 71,000 net operating and nonoperating acres. The transaction includes 5,000 drilling locations as well as:
- More than 90% of operated acreage HBP;
- About 195 miles of gas gathering lines with 21,000 horsepower of owned compressors;
- 450,000 barrels of water storage with more than 84 miles of water lines;
- Nine saltwater disposal wells;
- Estimated proved reserves of 541 billion cubic feet equivalent (Bcfe); 2P reserves of 1.2 Tcfe and 3P reserves of 5 Tcfe as of November; and
- Estimated five-year average annual cash flow of $24 million based on production and forward NYMEX Henry Hub strip prices.
With the completion of the acquisition and related financing, Houston-based Par Pacific's ownership interest in Laramie increased to 42.3% from 32.4%.
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