WPX Energy (NYSE: WPX) has completed its sale of its San Juan Basin gathering system for consideration of approximately $309 million. WPX received $285 million cash, subject to closing adjustments, and a commitment by the purchaser estimated at $24 million to expand the system to support WPX’s development in the basin’s Gallup oil play.
WPX has grown its footprint in the Gallup oil play to approximately 100,000 acres. Year-over-year, WPX increased Gallup oil volumes by 128% in 2015 to an average of 8,900 barrels per day.
The company also expects to complete the sale of its Piceance Basin subsidiary for $910 million in the second quarter.