US-based oil and gas exploration and production company Range Resources has completed the $865m sale of its coalbed methane assets at Nora fields in Virginia, US.
In November 2015, the company agreed to sell its Nora field assets to Houston-based oil and gas company EnerVest for $876m, and has received $11m less based on a purchase price adjustment, effective from 1 November.
Located mainly in the southwest of the state, the assets comprise about 3,500 operated wells and around 460,000 net acres in the Nora / Haysi combined fields.
EnerVest CEO John B. Walker said at that time: “This acquisition adds to EnerVest’s significant position in Appalachia, and includes additional drilling opportunities at today’s commodity prices.
“In addition, there are potential future exploration opportunities below the existing producing zones.”
Range will include operations at the field in the full final quarter of 2015. The third quarter production for the assets was 109 Mmcf per day, which accounts for around 7.5% of the company’s net production.
Range has used the sales proceeds to reduce debt by 24% from the balance on 30 September 2015.
The firm expects the transaction to boost its financial condition by lowering leverage and increasing liquidity.
It is also expected to bring down the direct operating expenses, brokerage natural gas and marketing expenses and general and administrative expenses of the company in 2016.
Borrowing base under Range Resources’ revolving credit facility remains unchanged at $3bn following the transaction.