Titan Energy LLC agreed to divest its 25% stake in the Chevron Corp.-operated Rangely Field in Colorado for $105 million.
Rangely Field is a CO2 flood in Rio Blanco County, Colo. The deal includes Titan's interest in the field, its 22% interest in Raven Ridge pipeline, a CO2 transportation line, as well as surrounding properties in Rio Blanco and Moffat counties, Colo. The assets yielded about 2,500 barrels of oil equivalent per day of net production, 90% of which is oil and the rest made up of liquids.
"This transaction, along with the previously announced sale of Appalachia, reduces Titan's debt by $189 million and allows the Company to focus on development of the Eagle Ford Shale, where well results continue to exceed type curve expectations," said Daniel Herz, CEO of Titan.
Proceeds would be used to repay borrowings under the company's first lien credit facility. The deal is scheduled to close in August, with an effective date of May 1.