Denver-based DJR Energy has concluded its $480 million purchase of assets in northern New Mexico’s San Juan Basin.
The purchase was of the assets of Encana Oil and Gas and was originally announced in October. It gives DJR more than 350,000 net acres in the Basin including an inventory of more than 1,100 high-value drilling locations and a midstream gathering system.
The company said its production will total about 7,000 barrels of oil equivalent a day.
“We look forward to continuing to unlock the potential of the southern San Juan Basin and believe DJR is well positioned as the dominant player in the oil window. Our team has done an excellent job of preparing for the transition, and we look forward to commencing drilling operations,” said Dave Lehman, President and CEO of DJR.
The sale of Encana’s operations in the San Juan Basin includes about 182,000 net acres and represents the company’s total land holdings in the basin. In 2017, the operation produced an average of roughly 5,400 barrels of oil equivalent per day.
The effective date of the sale is April 1, 2018.
Encana , a subsidiary of Encana Corp. and based in Calgary, Alberta, no longer has oil and gas operations in Colorado. The company has said it is focusing on its operations in the Eagle Ford and Permian basins in the U.S. and the Montney and Duvernay oilfields in Canada.
