Energen To Sell Black Warrior Basin Properties For About $160 Mln. - Quick Facts

(RTTNews) - Oil and gas company Energen Corp. (EGN) said Wednesday it has agreed with an undisclosed buyer to sell its Black Warrior Basin coalbed methane assets in Alabama for $160 million plus standard closing adjustments. The sale is expected to close in early October 2013.

Energen said it plans to use the sale proceeds to reduce short-term indebtedness.

At December 2012, proved reserves associated with Energen's Black Warrior Basin properties totaled 97 billion cubic feet.

After adjusting fourth quarter production by about 0.4 million barrels of oil equivalents (MMBOE) for the sale of these assets, Energen's revised production guidance range from all operations for 2013 is 25.7-26.1 MMBOE.

The company's preliminary estimates of 2013 production and income from discontinued operations (excluding a gain on the sale) are, respectively, 1.4 MMBOE and $11.0 million, or 15 cents per share.