September 28, 2017 - 7:00 AM EDT
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Corporate News Blog - PDC Energy Announces Bolt-On Acquisition and Strategic Acreage Trade

LONDON, UK / ACCESSWIRE / September 28, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for PDC Energy, Inc. (NASDAQ: PDCE) ("PDC"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=PDCE. The Company announced on September 25, 2017, that it has struck an agreement to acquire assets from Denver-based Bayswater Exploration & Production, LLC ("Bayswater") for $210 million in cash. The Company also signed an Acreage Exchange Agreement with another unnamed Wattenberg operator to consolidate certain acreage positions. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Details of the Agreements

  • The agreement with Bayswater is subject to post-closing adjustments.
  • Both the acquisition and the acreage trade are located in the Core Wattenberg field in Weld County, Colorado.
  • The agreements will result in two newly consolidated acreage positions: (i) the Prairie Area, and (ii) the Plains Area.
  • PDC expressed that these two new consolidated areas, along with its Kersey Area, will be the primary focus of its ongoing development efforts.
  • Both the transactions are expected to close in Q4 2017.

Agreement Enabled PDC to Add Highly Economic Projects in Core Wattenberg Field to its Existing Inventory

Bart Brookman, President and Chief Executive Officer (CEO) of PDC, stated that these strategic business development initiatives offer the Company a great opportunity to not only drill more extended-reach lateral wells, but add to its existing inventory of highly economic projects in the Core Wattenberg Field. Brookman added that as the Company has experienced first-hand in its Kersey Area, there are significant capital and operational efficiencies, reduced surface impacts, and incremental value created through consolidated acreage positions.

Prairie Area

  • The acquisition consists of 8,300 net acres, along with current net production of around 2,200 barrels of oil equivalent per day, consisting of approximately 60% crude oil.
  • PDC evaluated that the acquisition will add an incremental 240 gross drilling locations. It will also result in increased working interests in around 60 existing PDC locations, including 30 operated drilled uncompleted wells.
  • Combining the Company's existing acreage with the newly acquired acreage is likely to result in a consolidated position of approximately 30,000 net acres in the Middle and Outer Core areas of the Wattenberg Field. The combined new acreage will be referred to as the Prairie Area.

Plains Area

  • The Acreage Trade includes leasehold acreage only and does not include production, wellbores, or existing facilities.
  • PDC traded around 11,700 net acres in exchange for 12,100 net acres, subject to title examination and other customary adjustments.
  • The newly acquired acreage, along with the Company's existing acreage and portions of a previously announced acreage trade, is likely to result in a consolidated position of approximately 17,500 net acres in the Inner and Middle Core areas of the Wattenberg Field. This combined new acreage will be referred to as the Plains Area.

About PDC Energy

Founded in 1969, PDC is an exploration and production Company, focused on value-added organic growth through active horizontal drilling programs and bolt-on acquisitions in its core areas. The Company is headquartered in Denver, Colorado.

About Bayswater Exploration & Production, LLC

Established in 2004, Bayswater operates as an oil and gas development Company, focusing on acquiring low-risk working interests in producing oil and gas fields in North America; assembling prospective acreage positions; and acquiring and drilling low-risk non-producing acreages. The Company is based in Denver, Colorado.

Last Close Stock Review

On Wednesday, September 27, 2017, the stock closed the trading session at $50.09, slightly up 0.60% from its previous closing price of $49.79. A total volume of 1.43 million shares have exchanged hands, which was higher than the 3-month average volume of 1.15 million shares. PDC Energy's stock price soared 30.58% in the last one month and 24.02% in the past three months. The stock currently has a market cap of $3.28 billion.

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Source: ACCESSWIRE Investor Awareness (September 28, 2017 - 7:00 AM EDT)

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