Harvest Oil & Gas announces divestiture of San Juan Basin assets

Published by Aimee Knight, Editorial Assistant
Oilfield Technology, Friday, 15 February 2019 15:00

Harvest Oil & Gas Corp. (‘Harvest’ or the ‘Company’) has announced that it has entered into a definitive agreement to sell all of its interests in the San Juan Basin in New Mexico and Colorado to an undisclosed buyer for US$42.8 million (subject to purchase price adjustments). The transaction is expected to close in April 2019 and has an effective date of October 1, 2018. The Company plans initially to use net proceeds to reduce outstanding borrowings under its revolving credit facility.

Harvest’s San Juan Basin production for the first nine months of 2018 averaged 23.7 million ft³ equivalent per day. The estimated proved reserves for the interests being divested, using fresh start accounting guidelines and SEC prices as of May 31, 2018 were 163.2 billion ft³ equivalent (65% natural gas, 30% natural gas liquids and 5% crude oil) as previously detailed in the Company’s August 21, 2018 press release. UBS Investment Bank is acting as financial advisor and Kirkland & Ellis LLP is acting as legal advisor to Harvest on this transaction.

In addition, Harvest has sold all of its 4.2 million shares of Magnolia Oil & Gas Corporation stock for net proceeds of US$51.7 million, which were used to reduce outstanding borrowings under the Company’s revolving credit facility. As of February 14, 2019, the Company had US$55 million outstanding under its revolving credit facility.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/15022019/harvest-oil-gas-announces-divestiture-of-san-juan-basin-assets/

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