Also Acquires Interest in Wells and Acreage in Andrews County, Texas
MIDLAND, Texas–(Business Wire)–
Clayton Williams Energy, Inc. (the “Company”) (NASDAQ:CWEI)today reported that
it had sold its interests in 22 operated and 76 non-operated producing wells in
North Louisiana to WildHorse Resources, LLC, for $77 million, based on an
effective date of April 1, 2010 and subject to customary closing adjustments.
The assets that were sold in this transaction represent substantially all of the
Company`s proved reserves in North Louisiana. None of the Company`s holdings in
South Louisiana were included in this sale. The sale transaction is not expected
to result in a significant gain or loss since the net proceeds from the sale
approximate the carrying value of the assets being sold. Proceeds from the sale
were used to repay indebtedness on the Company`s $300 million revolving credit
facility, reducing the balance outstanding on the facility to approximately $127
million on the closing date.
The Company also announced that it had recently acquired from a group of private
investors an undivided 14% working interest in 36 Company-operated Wolfberry
wells in Andrews County, Texas for $9.75 million, subject to customary closing
adjustments. This purchase increased the Company`s working interest in these 36
wells to 100%. In addition to the oil and gas reserves attributable to the
acquired interests, the Company increased its stake in approximately 5,700 gross
acres under lease in this area from 86% to 100%.
Clayton Williams Energy, Inc. is an independent energy company located in
Midland, Texas.
This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934.All statements, other than statements of historical or current facts,
that address activities, events, outcomes and other matters that we plan,
expect, intend, assume, believe, budget, predict, forecast, project, estimate or
anticipate (and other similar expressions) will, should or may occur in the
future are forward-looking statements.These forward-looking statements are based
on management`s current belief, based on currently available information, as to
the outcome and timing of future events.The Company cautions that its future
natural gas and liquids production, revenues, cash flows, liquidity, plans for
future operations, expenses, outlook for oil and natural gas prices, timing of
capital expenditures and other forward-looking statements are subject to all of
the risks and uncertainties, many of which are beyond our control, incident to
the exploration for and development, production and marketing of oil and gas.
These risks include, but are not limited to, the possibility of unsuccessful
exploration and development drilling activities, our ability to replace and
sustain production, commodity price volatility, domestic and worldwide economic
conditions, the availability of capital on economic terms to fund our capital
expenditures and acquisitions, our level of indebtedness, the impact of the
current economic recession on our business operations, financial condition and
ability to raise capital, declines in the value of our oil and gas properties
resulting in a decrease in our borrowing base under our credit facility and
impairments, the ability of financial counterparties to perform or fulfill their
obligations under existing agreements, the uncertainty inherent in estimating
proved oil and gas reserves and in projecting future rates of production and
timing of development expenditures, drilling and other operating risks, lack of
availability of goods and services, regulatory and environmental risks
associated with drilling and production activities, the adverse effects of
changes in applicable tax, environmental and other regulatory legislation, and
other risks and uncertainties are described in the Company’s filings with the
Securities and Exchange Commission.The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
Clayton Williams Energy, Inc.
Patti Hollums, 432-688-3419
Director of Investor Relations
e-mail: cwei@claytonwilliams.com
website: www.claytonwilliams.com
or
Mel G. Riggs, 432-688-3431
Chief Financial Officer
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