Clayton Williams Energy Inc., Midland, Tex., has agreed to sell its assets in the Giddings area of east-central Texas to an undisclosed third party for $400 million.
The firm expects to close the sale in December and use the proceeds to fund development of its Delaware basin acreage and repay a portion of its outstanding indebtedness. Clayton Williams in August said it plans to complete 10 horizontal wells this year in the Delaware (OGJ Online, Aug. 4, 2016).
The properties being sold produced 3,900 boe/d, of which 80% was oil, during the third quarter, and accounted for 9.7 million boe of proved reserves as of Sept. 30.
According to the firm’s web site, the entirety of its Giddings assets cover 170,000 net acres in an “oil-prone area” comprising several different producing horizons, including the Austin Chalk, Eagle Ford, Buda, and Georgetown formations.
The firm also named Patrick G. Cooke as senior vice-president and chief operating officer (OGJ Online, Oct. 25, 2016). He most recently served as business unit manager of Noble Energy Inc., where he had direct management responsibilities over the firm's Delaware basin assets.