Virginia-based Dominion Resources has announced that it has agreed to sell most of its U.S. onshore natural gas and oil exploration and production operations in two separate transactions for a total of approximately $6.5 billion.
These operations include 3.51 trillion cubic feet equivalent of proved natural gas and oil reserves as of Dec. 31, 2006.
The transactions include the purchase Dominion’s operations in the Permian Basin, Michigan and Alabama for $4.025 billion by the Loews Corporation. These operations include reserves of approximately 2.5 Tcfe.
XTO Energy Inc. has agreed to purchase Dominion’s operations in the Rocky Mountains, Gulf Coast, San Juan Basin and South Louisiana for $2.5 billion. These operations include proved reserves of approximately 1 Tcfe.
A process to sell Dominion’s operations in the Mid-Continent Basin is scheduled to begin in July and to be completed by the end of 2007. These operations, located primarily in Oklahoma, had proved, probable and possible reserves of 780 Bcfe, 435 Bcfe and 966 Bcfe respectively, with average daily production of 120 MMcfe in 2006.
Dominion will retain its Appalachian operations including approximately 1 Tcfe of proved reserves.