Clayton Williams Energy Inc. (NYSE: CWEI) has sold approximately 3,700 net acres in Burleson County, Texas, for cash consideration of $22.1 million. The acreage, located east of the company’s contiguous acreage block, was sold under a term assignment that terminates on Oct. 27 unless the buyer begins a 90-day continuous development program on the acreage.
The company retained its rights to all depths and formations other than the Eagle Ford formation and also retained its interest in acreage and production associated with the Porter E Unit #1, the company’s only Eagle Ford well situated on the acreage.
Proceeds from the sale were used to reduce outstanding borrowings on the company’s bank credit facility.
The company plans to resume drilling operations in the third quarter of 2015, with one rig drilling horizontal Wolfcamp wells on the company’s 66,000-net-acre position in the southern Delaware Basin in Reeves County, and one rig drilling horizontal Eagle Ford wells on the company’s 170,000-net-acre block in Robertson, Burleson, Lee, and Bastrop counties. Drilling and completion costs associated with these rigs for the remainder of 2015 are expected to total approximately $35 million and will be financed by incremental borrowings on the company’s bank credit facility.