Bayswater Exploration and Production, a Denver-based oil and gas company, has entered into an agreement to sell $603 million worth of its assets in Colorado’s Denver-Julesburg basin to Houston-based Prairie Operating Co.
Bayswater announced the cash and stock transaction Friday. The sale includes roughly 24,000 leased acres, 300 producing horizontal wells on 30 pads and the daily equivalent of 25,000 barrels of oil a day. The deal’s other assets are newly drilled but not-completed wells and a saltwater disposal system operated by Bayswater.
Steve Struna, Bayswater president and CEO, said the agreement represents the culmination of years of work by the company’s D-J Basin team. Bayswater has operated in the basin since 2009 and is proud of the high-quality asset it has built there, Struna said in a statement.
Bayswater will retain and operate 70 horizontal wells that produce the equivalent of approximately 18,000 barrels of oil a day. The company said it also has one active drilling rig in the D-J Basin, which is in northeastern Colorado.
Struna called the sale a part of the natural lifecycle of the business. He said the company remains committed to operating in the D-J Basin and looks forward “to rebuilding our Colorado footprint” with newly raised capital.
Bayswater has 50,000 acres in the Northern Midland Basin in Texas that include 140 active wells and Tejon Treating and Carbon Solutions, an affiliate-owned gas gathering and treating business.
Gary Hanna, president of Prairie Operating, said the purchase of Bayswater’s assets “represents a transformative milestone” by significantly expanding the company’s footprint in the D-J Basin.
“Upon closing, we will be well-positioned to deliver significant organic production growth in 2025 and beyond,” Hanna said in a statement.
The company expects to complete the transaction this month.
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