Middle Fork Energy Partners, a Denver-based company formed last year that seeks to acquire, develop and operate petroleum properties in the Rocky Mountains, has acquired all of the Utah gas and oil properties of QEP Energy Co., a subsidiary of QEP Resources Inc., also of Denver. In addition to producing wells, the deal includes undeveloped acreage and related assets located in the Uinta Basin. The sale price was reported to be $155 million.
The agreement provides for the sale of QEP’s assets located in Duchesne and Uintah counties, which include an estimated 605 billion cubic feet equivalent (cfe) of proven reserves as of Dec. 31. The properties had net production in the first quarter of 2018 of 54 million cfe per day, of which approximately 23 percent was liquids, the company said.
Citigroup Global Markets Inc. served as financial advisor and Latham & Watkins LLP provided legal counsel to QEP. Porter Hedges LLP provided legal counsel to Middle Fork Energy Partners LLC.
Earlier this year, QEP officials stated their intention to concentrate their efforts in the Permian Basin in Texas. Last July, QEP also said it would sell two natural gas assets in southwest Wyoming for $777.5 million, with proceeds from both transactions going to buy producing acreage in the Permian Basin in Martin County, Texas, near its existing Midland Basin acreage.