El Paso Corporation announces significant progress on non-core asset sales, completing one transaction and executing purchase and sale agreements on several others. The expected proceeds from the reported transactions total approximately $275 million.
El Paso has completed the sale of its legacy fuel oil terminal located in South Boston for approximately $20 million.
In addition, El Paso Exploration & Production Company has entered into two purchase and sale agreements to sell two non-strategic natural gas producing properties for a total of approximately $77 million. The company will sell properties located in the San Juan Basin in northwest New Mexico that were part of its 2007 acquisition of Peoples Energy, as well as properties in the Shongaloo and Spring Hill fields along the Louisiana/Arkansas border. In total, the properties to be sold contain a current estimated 40 billion cubic feet equivalent of proved reserves, with current production of approximately 15 million cubic feet of gas equivalent per day. The sales have an effective date of December 1, 2008, and are expected to close by the end of January 2009.
El Paso has also executed a purchase and sale agreement on the sale of its interest in the Porto Velho power generation facility in Brazil for $178 million. The sale of the interest in Porto Velho will complete the company's exit from the power business in Brazil. Sales proceeds are expected to be paid with up to $100 million in cash, with the balance being paid by a note from the buyer. The sale is expected to close by the end of the first quarter of 2009.
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