Clayton Williams Energy says funds will be used to expand into Delaware Basin, improve balance sheet
Midland, Texas-Clayton Williams Energy, Inc. says it has entered into a definitive purchase and sale agreement with a third party to sell substantially all its assets in the Giddings area in East Central Texas for $400 million.
Clayton Williams Energy (NYSE: CWEI) says the sale is subject to customary closing conditions and adjustments and it expects to close the sale in Dec., using the proceeds from the sale to fund development in the Delaware Basin and repay a portion of its outstanding indebtedness, the company said in a press release.
The properties being sold produced an average of approximately 3,900 barrels of oil equivalent (BOE) per day (80% oil) for the quarter ended Sept. 30 and accounted for approximately 9.7 million BOE of proved reserves as of Sept. 30.
“I would like to thank all of our Giddings Area employees for their service and dedication, and for building and developing a quality asset,” said Mel Riggs, president of Clayton Williams Energy.
The company also announced effective Oct. 31, Patrick G. Cooke will joinClayton Williams Energy as Senior Vice President and Chief Operating Officer.
For the past four years, Cooke has served in various management capacities with Noble Energy, his most recent position being Texas Business Unit Manager, where he had direct management responsibilities over Noble’s Delaware Basin assets.
Prior to that, Cooke served in various capacities with BP America, including as Operations Manager for the Thunder Horse platform in the Gulf of Mexico.
The previously announced hire of Jaime R. Casas “will continue to strengthen the company’s management team,” said Riggs. Casas joined the Ccmpany as Senior Vice President and Chief Financial Officer of the Company on Oct. 1.
“We are pleased to welcome Patrick and Jaime to our executive team. Both are extremely qualified and have the specific experience we need to help us drive growth and create value for our shareholders. We also express appreciation to Mike Pollard, our former CFO, for his significant contributions to our Company over the past 23 years,” said Riggs.
Goldman Sachs & Co. served as exclusive financial advisor and Vinson & Elkins served as legal advisor to the Company on the transaction.
