SM Energy sells 15,400 acres in LaSalle and Dimmit counties for $225 million ($14,600 per acre) to a partnership of Talisman and Statoil. SM Energy has been courting offers over the past several months and it looks like it wasn't able to get a satisfactory JV agreement across all of its acreage. Expect another announcement across a larger portion of the company's acreage in the coming weeks.
"The position is a detached block of acreage that is comprised of the entirety of the Company's operated acreage in LaSalle County, Texas, as well as an immaterial portion of adjacent operated acreage in Dimmit County, Texas. In total, approximately 15,400 net acres are being sold for cash proceeds of approximately $225 million. Due to limited infrastructure, there is currently no production associated with three wells that have been drilled on the acreage. As of year-end 2010, there was an immaterial amount of proved reserves booked for this acreage. The buyers will be entitled to approximately 12% of the takeaway capacity associated with SM Energy's agreement with Eagle Ford Gathering LLC, a joint venture between Kinder Morgan Energy Partners, L.P. and Copano Energy, L.L.C."
Read the full press release at sm-energy.com