Bayswater Completes Sale of DJ Basin Assets
Bayswater Exploration and Production has completed the sale of its Denver Julesburg (DJ) Basin assets to Prairie Operating Co. (PROP) in a transaction valued at approximately $603 million, combining cash and stock. The deal includes approximately 24,000 leased acres, 300 horizontal wells producing 27,500 barrels of oil equivalent per day (BOED), nine newly drilled but uncompleted horizontal wells, and a saltwater disposal system.
Following the transaction, Bayswater will retain and operate 70 horizontal wells producing approximately 18,000 BOED and a nine-well pad currently under completion by Halliburton. The company remains committed to operating in the DJ Basin and plans to rebuild its Colorado footprint in the coming years.
Bayswater Exploration and Production ha completato la vendita dei suoi beni nel bacino di Denver Julesburg (DJ) a Prairie Operating Co. (PROP) in una transazione del valore di circa 603 milioni di dollari, combinando contante e azioni. L'accordo include circa 24.000 acri in affitto, 300 pozzi orizzontali che producono 27.500 barili di equivalente petrolio al giorno (BOED), nove pozzi orizzontali recentemente perforati ma non completati, e un sistema di smaltimento dell'acqua salata.
In seguito alla transazione, Bayswater manterrà e gestirà 70 pozzi orizzontali che producono circa 18.000 BOED e un pad di nove pozzi attualmente in fase di completamento da parte di Halliburton. L'azienda rimane impegnata a operare nel bacino DJ e prevede di ricostruire la sua presenza in Colorado nei prossimi anni.
Bayswater Exploration and Production ha completado la venta de sus activos en la cuenca de Denver Julesburg (DJ) a Prairie Operating Co. (PROP) en una transacción valorada en aproximadamente 603 millones de dólares, combinando efectivo y acciones. El acuerdo incluye aproximadamente 24,000 acres arrendados, 300 pozos horizontales que producen 27,500 barriles de equivalente de petróleo por día (BOED), nueve pozos horizontales recién perforados pero no completados, y un sistema de eliminación de agua salada.
Tras la transacción, Bayswater retendrá y operará 70 pozos horizontales que producen aproximadamente 18,000 BOED y una plataforma de nueve pozos actualmente en proceso de finalización por Halliburton. La empresa sigue comprometida a operar en la cuenca DJ y planea reconstruir su presencia en Colorado en los próximos años.
베이스워터 탐사 및 생산은 프레리 운영 회사 (PROP)에 덴버 줄스버그(DJ) 분지 자산을 약 6억 3백만 달러의 거래로 매각했다고 발표했습니다. 이 거래에는 약 24,000 에이커의 임대 토지, 300개의 수평 유정이 포함되어 있으며, 이들은 하루에 27,500 배럴의 석유 등가물(BOED)을 생산하고, 최근에 시추되었지만 완료되지 않은 9개의 수평 유정과 염수 처리 시스템이 포함됩니다.
거래 후 베이스워터는 약 18,000 BOED를 생산하는 70개의 수평 유정을 유지하고 운영할 것이며, 현재 할리버튼에 의해 완료 중인 9개 유정 패드를 운영할 것입니다. 이 회사는 DJ 분지에서의 운영에 전념하고 있으며, 향후 몇 년 안에 콜로라도에서의 입지를 재건할 계획입니다.
Bayswater Exploration and Production a finalisé la vente de ses actifs dans le bassin de Denver Julesburg (DJ) à Prairie Operating Co. (PROP) dans le cadre d'une transaction d'une valeur d'environ 603 millions de dollars, combinant espèces et actions. L'accord comprend environ 24 000 acres loués, 300 puits horizontaux produisant 27 500 barils d'équivalent pétrole par jour (BOED), neuf puits horizontaux nouvellement forés mais non achevés, et un système d'élimination des eaux salées.
Suite à la transaction, Bayswater conservera et exploitera 70 puits horizontaux produisant environ 18 000 BOED et un pad de neuf puits actuellement en cours d'achèvement par Halliburton. L'entreprise reste engagée à opérer dans le bassin DJ et prévoit de reconstruire sa présence dans le Colorado dans les années à venir.
Bayswater Exploration and Production hat den Verkauf seiner Vermögenswerte im Denver Julesburg (DJ) Basin an Prairie Operating Co. (PROP) in einer Transaktion im Wert von etwa 603 Millionen Dollar abgeschlossen, die Bargeld und Aktien kombiniert. Das Geschäft umfasst etwa 24.000 gepachtete Acres, 300 horizontale Bohrungen, die 27.500 Barrel Öläquivalent pro Tag (BOED) produzieren, neun neu gebohrte, aber noch nicht abgeschlossene horizontale Bohrungen sowie ein System zur Entsorgung von Salzwasser.
Nach der Transaktion wird Bayswater 70 horizontale Bohrungen betreiben, die etwa 18.000 BOED produzieren, sowie ein neun Bohrungen umfassendes Pad, das derzeit von Halliburton fertiggestellt wird. Das Unternehmen bleibt der Tätigkeit im DJ Basin verpflichtet und plant, seine Präsenz in Colorado in den kommenden Jahren wieder aufzubauen.
- Significant transaction value of $603 million in cash and stock
- Acquisition of substantial producing assets with 27,500 BOED current production
- Addition of 24,000 leased acres to PROP's portfolio
- Includes valuable infrastructure (saltwater disposal system)
- Additional upside from 9 drilled but uncompleted wells
- None.
Insights
Prairie Operating Co.'s $603 million acquisition of Bayswater's DJ Basin assets represents a transformative deal for PROP, whose current market cap stands at just $157 million. This transaction dramatically expands Prairie's operational footprint by adding 24,000 leased acres, 300 producing horizontal wells generating 27,500 BOED (barrels of oil equivalent daily), nine drilled-but-uncompleted wells, and a valuable saltwater disposal system.
The scale of this acquisition is particularly noteworthy - Prairie is effectively quadrupling its size through this single transaction. For context, the added 27,500 BOED production represents significant immediate cash flow generation capability that should substantially alter Prairie's financial profile. The inclusion of the saltwater disposal system is an overlooked value driver, as these systems reduce operating expenses by eliminating third-party disposal fees while potentially generating additional revenue through third-party disposal services.
The nine uncompleted wells represent near-term production growth catalysts requiring minimal capital relative to drilling new wells. This structure allows Prairie to quickly grow production beyond the base 27,500 BOED by simply completing these already-drilled wells.
For a smaller-cap company like Prairie, this deal demonstrates ambitious growth execution while establishing the company as a more significant player in the resource-rich DJ Basin. The transaction structure involving both cash and stock suggests Prairie has balanced immediate payment with equity upside for Bayswater, potentially indicating confidence from both parties in Prairie's future prospects.
"We are pleased to get this deal across the finish line with Prairie Operating Co.," said Steve Struna, President and CEO of Bayswater. "Thank you to everyone who helped us get here, including Bayswater leadership,
With the close of this sale agreement, Prairie will acquire a portion of Bayswater's DJ Basin assets, including (approximately) 24,000 leased acres, 300 horizontal wells on 30 pads producing 27,500 barrels of oil equivalent per day (BOED), nine newly drilled but not yet completed horizontal wells, and a Bayswater operated saltwater disposal system.
Lynn Belcher, Chief Operating Officer of Bayswater, added "This sale represents the natural evolution and successful execution of our business model. We remain committed to operating in the DJ Basin and look forward to rebuilding our
Bayswater's business model is designed to acquire, develop, and monetize assets to provide an accretive return of capital to their investors. Having operated in the DJ Basin for 16 years, Bayswater remains committed to
Bayswater is a privately held oil and natural gas development company with operations in
Media Contacts:
Steve Struna | President & CEO | Bayswater | 303.893.2503
Mark Truax | Communications | Bayswater | 720.724.0298 | mark.truax@pacweststrategies.com
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SOURCE Bayswater Exploration & Production (Bayswater)
FAQ
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