Piceance assets sale complete
It is official — Terra Energy Partners LLC now owns the assets in Colorado’s Piceance Basin formerly held by WPX Energy.
WPX announced Friday, April 8, that it completed the sale to Terra for $910 million, subject to closing adjustments.
The news, while signaling WPX’s shift toward oil and more diversified commodity assets, leaves some long-term uncertainty regarding the future of the 207 people employed at the Parachute office.
The Parachute employees will remain WPX employees through the transition period, which ends June 30.
Terra is in the process of interviewing employees in Parachute and could extend offers to some employees, although the number of WPX employees that Terra intends to hire is unknown at this point, according to details of the transition services agreement provided by WPX. Those employees who receive offers will remain WPX employees through the transition period.
A spokesperson for Terra, a private equity-backed company, stated on Monday that the company was not commenting on the matter.
WPX initially announced the sale to Terra, which describes itself as an independent oil and natural gas company headquartered in Houston, in February.
At the time, Rick Muncrief, WPX president and CEO, said in a memo that Terra is a relatively new company, and therefore would need to hire additional employees to effectively manage the assets in the Piceance, which include more than 4,700 wells.
Terra CEO Michael Land said in a February news release that the purchase was Terra’s first acquisition since forming in the summer of 2015.
“The Piceance Basin is an area that we know well and one that we believe offers considerable upside potential through focused management,” Land said at the time.
WPX will continue to provide some back office support from its corporate office through the end of August.