Clayton Williams Energy, Inc. (the “Company”) (CWEI) today announced that it had sold approximately 3,700 net acres in Burleson County, Texas (the “Acreage”) 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 October 27, 2015 unless the buyer commences 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 also announced that it plans to resume drilling operations in the third quarter 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, 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 Company’s bank credit facility.
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.