EOG Resources, Inc. has divested all its assets in Manitoba and certain assets in Alberta in two separate transactions that closed on November 28 and December 1, 2014.
Approximate proceeds from the divestitures were US$ 410 million, net of customary transaction adjustments. As a result of these transactions, approximately US$ 150 million of restricted cash related to future abandonment liabilities was released. The proceeds and cash will be utilized for general corporate purposes.
Current forecast production from the divested assets is approximately 7,050 barrels of crude oil per day, 580 barrels of natural gas liquids (NGLs) per day and 43.5 million cubic feet of natural gas per day. Net proved reserves divested are estimated to be 7.7 million barrels of oil, 0.8 million barrels of NGLs and 78.7 billion cubic feet of natural gas. EOG divested 1.3 million gross acres (1.1 million net), 97 percent of which were in Alberta. Of the approximate 5,800 producing wells sold, 5,255 were natural gas.