Whiting Petroleum Corporation has sold its interests in several non-core properties. The sales were made to various undisclosed buyers for an aggregate amount of $24.6 million in cash. The divested properties include interests in the Permian Basin of West Texas and New Mexico, the Cessford field in Alberta, Canada, and the Ashley Valley field in Uintah County, Utah.
Average net production from the divested property interests was 413 BOE per day as of the dates of disposition. The sold US properties had weighted average lease operating expense (LOE) of $25.59 per BOE, as of the dates of disposition, versus Whiting’s 2006 companywide guidance of approximately $12.00 per BOE. The divested Canadian properties had LOE of $11.25 per BOE and an oil price differential of $18.45 per barrel below NYMEX. The large Canadian oil price differential is due primarily to the low gravity crude produced and compares to Whiting’s companywide 2006 oil price differential guidance of approximately $8.75 per barrel. The average differential for the sold US properties was in line with Whiting’s companywide guidance.