Anadarko sells Colorado properties

Ray Tyson

Anadarko Petroleum has agreed to sell its southeast Colorado producing properties to an affiliate of Citation Oil & Gas Corp. for $107.6 million, Anadarko said Nov. 1. The Houston-based independent, as part of a property divestiture program announced in June, now has agreements in place to sell about $2.5 billion of non-core assets and has additional agreements pending on about $800 million of assets.

Together, the divestitures represent year-end 2003 proved reserves of about 285 million barrels of oil equivalent and production of about 120,000 barrels of equivalent per day. Anadarko has said it intends to use sale proceeds to pay down debt and to buy back shares of the company. Anadarko’s latest sale includes an estimated 9 million barrels of oil equivalent in proved reserves and net production of about 3,000 barrels of equivalent per day. About 80 percent of the properties are operated, with roughly 90 percent of the proved reserves classified as oil and nearly 100 percent developed.

The transaction is expected to close by year-end 2004.