Denver company purchasing New Mexico oil wells for $480M
DURANGO, Colo. (AP) – A Denver-based company is set to purchase 90 northern New Mexico oil wells for $480 million.
The Durango Herald reports Encana Corp. announced Monday that it agreed to sell 90 horizontal oil wells in the San Juan Basin that use hydraulic fracturing to DJR Energy.
DJR Energy Chief Financial Officer Jeff King says horizontal wells that use fracking are much more productive than older vertical wells.
DJR Energy also operates 800 vertical oil wells mostly in the south rim of the San Juan Basin in New Mexico.
DJR is a private exploration and production oil and natural gas company formed in 2017 by a former Exxon Mobil Corp. executive.
King says DJR will likely add nine Encana employees to its Aztec field staff.
The transaction is expected to close in the fourth quarter of 2018.