Clayton Williams will resume drilling in Q3, sells Eagle Ford land

Clayton Williams Energy expects to run two rigs, one in Eagle Ford, one in Delaware Basin

Midland-based independent Clayton Williams Energy, Inc. says it has sold about 3,700 net acres in the Eagle Ford basin for $22.1 million and that it plans to resume drilling in the third quarter.

Mel Riggs, COO of Clayton Williams Energy Inc.

According to a release, the acreage in Burleson County,  located east of the company’s contiguous block, was sold under a term assignment that terminates on Oct. 27, 2015 unless the buyer commences a 90-day continuous development program on it.

Clayton Williams (NYSE:CWEI) 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, its 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.

Clayton Williams also announced Wednesday that it plans to resume drilling operations in the third quarter, with one rig drilling horizontal Wolfcamp wells on its 66,000 net acre position in the southern Delaware Basin of 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, Texas.

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 bank credit facility.