SM Energy said on Wednesday that its planning to sell assets in the Williston Basin as part of a plan to focus on its core portfolio.
The Denver-based company said it has engaged Tudor, Pickering, Holt & Co. to run a formal bid process for sale of its Divide County area assets in the Williston Basin.
The company said that, assuming an acceptable offer is received, it expects to close the sale transaction around mid-year of 2017.
Associated December 2016 production for the Divide County assets was 10,700 barrels of oil equivalent per day.
“Over the next few years, we intend to focus on generating significant high margin production growth from our operated acreage positions in the Midland Basin and Eagle Ford,” SM Energy president and CEO Jay Ottoson said.
Earlier this month, SM Energy agreed to sell assets in the Eagle Ford Basin to Venado Oil and Gas for $800 million.
The assets expected to be sold include 37,500 net acres in the Maverick Basin /Eagle Ford area in the south of Texas.
The deal also includes a 12.5 percent interest in the Springfield Gathering System.
Net proved reserves associated with the assets were 65 million barrels of oil equivalent as of the end of 2015, SM Energy said earlier this month.
The Eagle Ford sale is expected to close in the first quarter of 2017, with an effective date of November 1, 2016.
“We expect that the sale proceeds from this planned exit of the Williston Basin and from the pending sale of our non-operated Eagle Ford assets will allow us to fully fund our drilling program, while providing us with significant liquidity and the ability to reduce our outstanding debt,” Ottoson said on Wednesday