DENVER, June 28, 2011 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) announced today that it has entered into an agreement to sell for $191 million its 57.5% operated working interest in the Riley Ridge Federal Unit and gas plant located in southwestern Wyoming. The sale is expected to close in July and is subject to satisfactory completion of customary due diligence.
The sale does not impact Cimarex's expected 2011 production estimates, as the plant was not expected to come online until late this year. Year-end 2010 proven undeveloped reserves included 210 billion cubic feet (Bcf) of gas from Riley Ridge.
Proceeds from the divestiture are expected to be largely re-invested in this year's capital program. At the present time we expect 2011 capital expenditures of approximately $1.5 billion, including leasing and infrastructure build out in the Permian Basin and Mid-Continent regions.
About Cimarex Energy
Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent, Permian Basin and Gulf Coast areas of the U.S.
This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
SOURCE Cimarex Energy Co.
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