Bayswater Enters Sale Agreement for DJ Basin Assets
Bayswater Exploration and Production has agreed to sell its DJ Basin assets to Prairie Operating Company (PROP) in a cash and stock transaction valued at $603 million. The sale package includes approximately 24,000 leased acres, 300 producing horizontal wells on 30 pads, and 25,000 BOED production capacity, along with nine newly drilled uncompleted wells and a saltwater disposal system.
Post-transaction, Bayswater will maintain operations in the DJ Basin with 70 horizontal wells producing about 18,000 BOED. The company also retains its Texas assets, including 50,000 acres in the Northern Midland Basin with 140 horizontal wells producing 20,000 BOED, a saltwater disposal system, and the Tejon Treating and Carbon Solutions business.
Bayswater Exploration and Production ha concordato di vendere i suoi asset nel Bacino DJ a Prairie Operating Company (PROP) in una transazione in contante e azioni del valore di 603 milioni di dollari. Il pacchetto di vendita include circa 24.000 acri concessi in locazione, 300 pozzi orizzontali produttivi su 30 piattaforme e una capacità produttiva di 25.000 BOED, insieme a nove pozzi recentemente trivellati non completati e a un sistema di smaltimento dell'acqua salata.
Dopo la transazione, Bayswater manterrà le sue operazioni nel Bacino DJ con 70 pozzi orizzontali che producono circa 18.000 BOED. L'azienda conserva anche i suoi asset in Texas, che comprendono 50.000 acri nel Bacino Midland Settentrionale con 140 pozzi orizzontali che producono 20.000 BOED, un sistema di smaltimento dell'acqua salata e il business di trattamento Tejon e soluzioni carboniche.
Bayswater Exploration and Production ha acordado vender sus activos en la Cuenca DJ a Prairie Operating Company (PROP) en una transacción de efectivo y acciones valorada en 603 millones de dólares. El paquete de venta incluye aproximadamente 24,000 acres arrendados, 300 pozos horizontales productivos en 30 plataformas y una capacidad de producción de 25,000 BOED, junto con nueve pozos recientemente perforados y no completados y un sistema de eliminación de agua salada.
Tras la transacción, Bayswater mantendrá operaciones en la Cuenca DJ con 70 pozos horizontales que producen alrededor de 18,000 BOED. La empresa también retiene sus activos en Texas, que incluyen 50,000 acres en la Cuenca Midland del Norte con 140 pozos horizontales que producen 20,000 BOED, un sistema de eliminación de agua salada y el negocio de tratamiento Tejon y soluciones de carbono.
베이즈워터 탐사 및 생산(Bayswater Exploration and Production)은 프레리 운영 회사(Prairie Operating Company, PROP)에 DJ 분지 자산을 현금 및 주식 거래로 6억 3백만 달러에 판매하기로 합의했습니다. 판매 패키지에는 약 24,000 에이커의 임대된 토지, 30개의 패드에 있는 300개의 생산적인 수평 유정 및 25,000 BOED의 생산 능력이 포함되어 있으며, 9개의 새로 뚫은 미완공 유정과 소금물 처리 시스템도 포함되어 있습니다.
거래 후, 베이즈워터는 DJ 분지에서 70개의 수평 유정을 운영하면서 약 18,000 BOED를 생산할 것입니다. 회사는 또한 50,000 에이커의 북부 미들랜드 분지에 있는 자산을 보유하고 있으며, 140개의 수평 유정이 20,000 BOED를 생산하고 소금물 처리 시스템과 테혼 처리 및 탄소 솔루션 사업을 포함합니다.
Bayswater Exploration and Production a accepté de vendre ses actifs du Bassin DJ à Prairie Operating Company (PROP) dans le cadre d'une transaction en espèces et en actions d'une valeur de 603 millions de dollars. Le paquet de vente comprend environ 24 000 acres loués, 300 puits horizontaux en production sur 30 pads, et une capacité de production de 25 000 BOED, ainsi que neuf puits récemment forés non complétés et un système d'élimination des eaux salées.
Après la transaction, Bayswater maintiendra des opérations dans le Bassin DJ avec 70 puits horizontaux produisant environ 18 000 BOED. L'entreprise conserve également ses actifs au Texas, y compris 50 000 acres dans le Bassin Midland Nord avec 140 puits horizontaux produisant 20 000 BOED, un système d'élimination des eaux salées et l'activité de traitement Tejon et Solutions carbone.
Bayswater Exploration and Production hat zugestimmt, seine Vermögenswerte im DJ-Becken an Prairie Operating Company (PROP) in einer Bar- und Aktien-Transaktion im Wert von 603 Millionen Dollar zu verkaufen. Das Verkaufsangebot umfasst etwa 24.000 gepachtete Acres, 300 produzierende Horizontale Bohrungen auf 30 Pads und eine Produktionskapazität von 25.000 BOED, sowie neun neu gebohrte und unvollendete Bohrungen und ein Entsorgungssystem für salzwasser.
Nach der Transaktion wird Bayswater im DJ-Becken weiterhin mit 70 horizontalen Bohrungen arbeiten, die etwa 18.000 BOED produzieren. Das Unternehmen behält auch seine Vermögenswerte in Texas, einschließlich 50.000 Acres im Northern Midland Basin mit 140 horizontalen Bohrungen, die 20.000 BOED produzieren, einem Entsorgungssystem für salzwasser und dem Tejon Aufbereitungs- und Kohlenstofflösungs-Geschäft.
- Transaction value of $603 million in cash and stock
- Significant asset package including 24,000 acres and 300 producing wells
- Current production of 25,000 BOED from the sold assets
- None.
Insights
The $603 million acquisition of Bayswater's DJ Basin assets marks a transformative deal for Prairie Operating Company, significantly expanding their footprint in one of Colorado's premier oil and gas regions. The transaction's metrics reveal compelling economics - at approximately $24,120 per acre and $24,120 per flowing BOED, the valuation aligns with recent comparable transactions in the region.
The asset package's current production of 25,000 BOED from 300 producing wells, complemented by 9 drilled but uncompleted wells, provides Prairie with immediate cash flow generation and near-term growth potential. The inclusion of infrastructure assets, particularly the saltwater disposal system, represents substantial value beyond the producing wells, as it eliminates the need for capital investment in these critical facilities.
Strategic implications are multifaceted:
- The mixed consideration structure of cash and stock helps Prairie preserve capital flexibility while maintaining a strong balance sheet
- The acquired infrastructure and contiguous acreage position should drive operational efficiencies and cost synergies
- The addition of 24,000 acres provides Prairie with a deep inventory of future drilling locations, supporting long-term growth potential
- The timing coincides with strong commodity prices and increasing investor interest in DJ Basin assets
For Prairie shareholders, this acquisition represents a significant step-up in operational scale and potential market revaluation as the company transitions into a larger, more established operator in the DJ Basin. The integration of these assets should drive economies of scale and potentially lead to improved margins through operational synergies.
"Today's agreement represents the culmination of years of work by our talented and dedicated DJ Basin team," said Steve Struna, President & CEO of Bayswater "Bayswater has been operating in the DJ Basin since 2009. We are proud of the high-quality asset we have built, our reputation as a responsible operator, and the positive impact we have had in surrounding
The sale includes (approximately) 24,000 leased acres, 300 producing horizontal wells on 30 pads, and 25,000 barrels of oil equivalent per day (BOED). Also included is nine newly drilled but not yet completed horizontal wells, and a Bayswater operated saltwater disposal system.
Bayswater is privately capitalized with a business model that is designed to acquire, develop, and subsequently monetize assets with the goal of an accretive return of capital to investors. The firm of Davis Graham was Bayswater's legal advisor for the transaction.
Bayswater remains committed to
"This sale is a key part in the natural lifecycle of our business. I am grateful to all my Bayswater field and office colleagues, our vendors, suppliers, and local community stakeholders," said Struna. "We remain committed to operating in the DJ Basin and look forward to rebuilding our
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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What assets are included in Prairie Operating Company's (PROP) DJ Basin acquisition?
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